There are several individuals who don’t know the importance of the 3-digit Credit Score. With this score, lenders estimate whether it would be safe for them to provide any credit or not. CIBIL is one of the most popular and leading credit bureaus of India that provides credit reports to customers. If we were to put it simply, CIBIL Score helps define an individual’s creditworthiness. This is why it is crucial to understand the important CIBIL Score details so that you won’t have to face any kind of problem in getting the credit.
A number of individuals have this misconception that not many factors contribute towards the CIBIL Score, which is not true. There are several important CIBIL Score details that carry different weightage to your score. Thinking about what are these factors? Well, these factors are Repayment History, Total Amount Owed by Borrowers, Number of years of your Debt, Number and Amount of Recent Loans Availed or applied for, and Credit Mix. In this article, we will be telling you about each of these factors along with how to check CIBIL Score Online without any hassle. So, let’s get to it! First we will be talking about the Repayment History.
Repayment History:- This is one of the most crucial CIBIL Score details that impact your score. This factor alone contributes 35% in the overall weightage of your score, which is highest among all factors. Your repayment history includes your Loan and Credit Card EMI Payments, Bill Payments, Utility Payment, etc. So, if you always pay your bills on time, there are high chances that your score would be 700 or above.
Total Amount Owed by Borrowers:- Having 30% of the overall weightage, this is also one of the important aspects that contributes towards your score. This aspect is all about how an individual manages the overall debt. As you know there are several kinds of loans such as Personal Loan, Home Loan, Gold Loan, etc. Let’s say an individual took two separate loans and paid both of them on time. This indicates that an individual can manage debt pretty well. Apart from this, you should also keep the Credit Utilization Ratio in your mind which is % of total available credit limit used in a month. If this ratio is low, individuals must have a good score.
Number of Years Servicing the Debt:- Among all the CIBIL Score Details, this factor contributes around 15% of the overall score. Simply understand this that if an individual has a higher year servicing the debt, he or she may have a good credit score. There are also a few factors that affect your score such as the age of your oldest account, Age of your newest account, average age of all your Debt accounts, etc.
Number & Amount of Recent Loans Availed or Applied for:- This detail contributes 10% weightage to your overall credit score. The crux of this factor is an individual should never apply for multiple credits in a short duration otherwise hard enquiries can impact your score. Similarly, if you have applied for a higher loan amount in the past and failed to repay on time, it will impact your credit score. So, always opt for a credit according to your requirement and repayment capacity.
Credit Mix:- Credit Mix is to have different kinds of credits such as credit cards and loans in your overall financials. Simply put, credit mix is the diversity of your credit. Among all the other CIBIL Score Details, this factor contributes 10% weightage to overall score. It is important to have a certain kind of credit mix in your profile so that your score can improve.
If you want to check your CIBIL Score Online, you can do it by visiting the official website of CIBIL. Fill a few basic details, and you will get the report to your email address.