What is a Cibil Score, why is it so important, and how does it affect your loan?

News Topical, Digital Desk : A CIBIL score, or credit score, is very important. Its importance is evident when applying for a loan. Banks also consider your credit score when applying for a loan. Your credit score assesses your ability to repay a loan. In addition to your credit score, banks consider several other factors when granting a loan.

However, today we are going to talk specifically about credit or CIBIL score?

What is Cibil Score?

A CIBIL score indicates a borrower's ability to repay a loan. It's a three-digit number, ranging from 30 to 900. The higher your CIBIL score, the better your chances. A good CIBIL score indicates your ability to repay a loan. 

This score depends on your credit card bill payment, credit card dependence and many other factors.

On what basis is CIBIL score calculated?

According to Cibil.com , CIBIL score depends on many factors. 

• Are you paying your credit bills and EMIs (if any) on time?
• How much do you depend on your credit card and how are you using it?
• How long have you been using a credit card?
• Do you use different types of credit cards?
• How often do you apply for a new credit card?

Which CIBIL score is the best?

• NA/NH – If you see NA or NH when checking your CIBIL score, it means that your CIBIL score has not been created because you have not yet used a loan or credit card. 
• 300 to 599 – A CIBIL score between 300 and 599 is considered poor. This indicates that you tend to delay payments. With this CIBIL score, it can be difficult to get a loan. 
• 550-649 – This is also considered low. Some financial institutions may offer you a loan in this range. 
• 650-749 – A CIBIL score in this range is considered good. You can secure a loan within this range. This also depends on the lender's policies. 
• 750-900 – This is the best CIBIL score range. Everyone will offer you a loan within this range. Some banks may even offer you a lower interest rate. 

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