4 Interesting Facts about CIBIL Score You Probably Didn’t Know

You must have heard the saying that your ‘CIBIL score’ is an indicator of your loan’s health record. It contains all your essential details to help determine your financial standing and repayment capacity.

A bank or a non-banking financial company will readily offer you a personal loan if you have a good CIBIL score. A personal loan EMI calculator makes it easy for you to calculate your monthly payments on the loan so that your CIBIL score is not hurt.

A CIBIL score varies from 300 to 900 and if you want to avail benefits on loans and credit cards then ideally your CIBIL score should be 750 or above.

Apart from loan authorization, the other decisions that are taken by the banks such as the amount of loan to be sanctioned, the complete tenure of the loan as well as the total rate of interest on the disbursed loan are also influenced by your CIBIL score.

Using a personal loan EMI calculator, you can effectively increase your CIBIL score. Some of the interesting facts about CIBIL score that you probably don’t know are: –

  • Your CIBIL score is independent of your savings and investment account details: –

The CIBIL score of an individual is calculated keeping in mind his/her past and current credit actions. The loan eligibility will entirely depend on the credit profile, kinds of credit, credit queries, and the ratio of credit usage.

Thus, while evaluating your CIBIL or credit score, the Credit Bureaus will not take your savings accounts, fixed deposit accounts, current accounts, and investment account details into consideration.

  • Checking your credit will not result in a reduced CIBIL score: –

People believe that if they would check their CIBIL score, then it might get reduced. This is not true, reviewing your CIBIL report at least once in a year is regarded as an ideal financial routine.

The practice of checking your credit or CIBIL score is known as a ‘soft inquiry’ which does not affect it.

The only time your credit score gets affected is when the banks, NBFCs, and the other lenders start making inquiries from the credit bureaus regarding your CIBIL score. This practice is also known as ‘hard inquiry’.

  • You will not find any suggestions and preventive measures in a CIBIL report: –

While applying for a personal loan, you need to figure out whether or not closing some of your credit accounts, repaying the pending loan amount, and fixing the debatable loan account will help you to boost your CIBIL score.

Unfortunately, a CIBIL report provides information only about payment arrears, over dues, and other payment violations but does not reflect on suggestions and preventive measures that can help boost your credit score.

  • A personal loan EMI calculator can help you in improving your CIBIL score: –

You can successfully minimize your credit utilization ratio by repaying your credits through a      personal loan. A personal loan EMI calculator is the best way to evaluate your amount of monthly EMI’s so that you can easily apply for a suitablepersonal loan and enhance your CIBIL score. You can know more about this by using a personal loan EMI calculator by Upwards.

CIBIL score is emerging as an essential component in the financial sector. To maintain a good CIBIL score, you should always focus on things like lowering the ratio of credit card usage, judicious utilization of your credits, and an ideal number of ongoing loans.

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