Know everything about Cibil Score Now

1
Low CIBIL is not a problem anymore. Here is
how Having a low CIBIL can be a pain, especially
when you are vouching for a loan! We can
understand the problems that it creates for
people, but this post will solve all your
problems once and for all. We have made sure to
brief you from the basics and equip you with all
the knowledge to make sure that you dont face
any CIBIL related problems in the future. What is
a CIBIL Score?
Lets understand the basics so that we are clear
about everything involving CIBIL.
CIBIL is the numerical representation of the
creditworthiness of an individual. Credit
agencies take numerous factors into account,
including past credit history, to assess every
profile and award number to come with a CIBIL
score. Some of these factors are - Amount of
outstanding Debt Length of credit history
Past payment behavior Credit Utilization
Ratio
2
History of credit cards Making a lot of
credit applications together This CIBIL score
will help every private and Government company
assess your profile and issue you a loan. Having
a high CIBIL score is crucial as it increases the
chances of getting an attractive interest rate on
your loan. The chances of getting a loan are also
directly dependent on CIBIL.
Different CIBIL Score Buckets
DIFFERENT CIBIL SCORE BUCKET
NAORNH 1-5 300-900
Different CIBIL score buckets have been divided
according to the data available about a
particular person. We have listed the buckets
here so that you can understand the
terminologies. NA or NH - These terms are
indicated on profiles that do not have a credit
history. For everyone who has not availed any
loans and no credit information has been reported
in the last 24 months.
1-5 - These numbers indicate that the applicant
has a credit history of fewer than six months.
3
300-900 - These numbers are indicated for all
individuals with a credit history of 6 months or
more. 300 is the lowest with 900 being the
highest. A score of more than 700 is generally
considered good.
How can we check our CIBIL score?
You can get to know your CIBIL score from a
variety of sources. Let us list some of these -
You can request your CIBIL score from your
Bank by paying a specific fee. Every Bank has a
separate charge, and you can check it on the
Banks Website The authority maintaining and
producing CIBIL scores is called CIBIL. You can
request your CIBIL score by buying one of the
subscription plans that they offer
CIBIL also offers a free variant for individuals.
You can check your CIBIL score for free using
this link
4
How and Why low CIBIL is a problem in the loan
process? Having a low CIBIL score can be a big
problem for your loan application. Every bank and
private company accesses your CIBIL score before
processing your loan. Having a low score
indicates that you are less likely to follow a
regular payment structure. This results in
significant banks denying your loan and getting
to ask private companies which charge 3-4 times
or more of the average interest rates. One small
mistake can cost you dearly, but there are ways
by which you can improve your score. Lets shed
some light on these ways.
How to Improve CIBIL Scores Immediately!
There are ways using which you can improve your
CIBIL score immediate Lets understand these ways
in detail -
1. Customizing your credit limit
5
You can customize your credit limit on your
credit cards according to your demands. You must
make it a point always to spend less than your
credit limit. Touching your limit or exceeding it
has an adverse impact on your CIBIL score. The
best way to take care of this point is to
customize your credit limit according to your
needs and plan it way ahead. 2. Maintaining
Older credit cards Discontinuing an old credit
card erases all your credit history associated
with it. If you have been maintaining a good
credit history with your card, you must continue
it even if you dont plan on using it. This will
help boost your score. 3. Maintain a strict
payment schedule Discipline is a critical factor
while paying your Credit. The best way to
accomplish this is by setting reminders and
planning the payments well in advance. Not paying
your EMIs on time not only invites a penalty, but
one small credit default can hamper the CIBIL
score significantly. 4. Choose your loan time
wisely You always have many options while
choosing the time to repay your loan. Choosing a
longer time is still better as it reduces the
monthly payment, thereby easing your
payments. Paying small amounts over a long period
will also help to improve your CIBIL score. 5.
Check on the number of loans you take at a
time Taking more than one loan at a time is bad
for your CIBIL score. It signifies that you are
taking more loans than you are capable of
repaying. It is a sign of bad payment habits.
6
Make sure to take one loan at a time and think of
the next one only when you have processed the
first one. 6. Taking on more Credit! Yes,
exactly By default, your CIBIL score will below
if you havent availed a loan in the past. If you
plan to take a loan and a low CIBIL score is a
problem, the best way is to take a short term and
a long term loan, which will build your credit
history. This will qualify you for lower interest
rates and favorable terms. 7. It is also
common for CIBIL reports to show the wrong
figures and payments. Make sure to check your
CIBIL report carefully, and if you find any
mistakes, you can always ask for a revision and
get it corrected.
How can we resolve low CIBIL problems and
different ways to do it
i 7 WAYS TO RESOLVE LOW CIBIL PROBLEMS
The solutions mentioned in the last section will
help you to improve your CIBIL score. But if you
are looking for a loan at the moment and have a
low score, you can still get a loan using some
measures. All the ways mentioned in this list
will help you to get a loan at the moment.
7
1. Choose to apply at an NBFC 2. If you
have a bad credit score, it is better not to
apply at banks as every application will further
hamper your credit score. Instead, apply at an
NBFC, which will process your loan. 3. Show
past records of regular payment on your loans.
Some of these might not be present on your credit
report but will be valid to build your case. 4.
Present strong evidence of current income
sources like your salary to prove the ability to
repay the loan. 5. If you are not approved for
a specific amount, you can ask for a lower loan
amount, which is often processed immediately. 6.
You can also apply for a joint loan with
someone with a good credit score. A guarantor top
of your loan will also do the job. 7. You can
also choose to apply for a secured loan by giving
some collateral. Collateral can be anything
ranging from jewelry, automobiles to property.
Conclusion We are sure that you are now equipped
with all the knowledge and tools to improve your
CIBIL score. Just by following all the steps in
this guide, you can significantly improve your
chances of getting a loan, as well as the rate of
interest that you get. Along with your CIBIL
score, choosing the right Bank and company can
significantly benefit you. Simplifying your
process further, Art of Loans helps you match
your application with the best loan provider
across all Organizations. Imagine a loan expert
with years of experience processing thousands of
loans, advising you about the best
options? Wouldnt that be amazing? Thats exactly
what Art of loans does for you!
Looking for a Loan and Have Low Credit Score? Let
Us Help You to Get a Loan at a Faster Pace! Art
of loans has helped thousands of individuals and
businesses get loans at attractive rates despite
their CIBIL score. You can also get a loan at
competitive rates even with a low CIBIL score
with the help of experts.
8
There are hundreds of factors and companies that
can provide you better options for your
requirements. Let Us know your loan requirements
and get your loan approved and processed in as
less as 36 hours from the loan application time.
Click here to apply now!