FAQ on CIBIL That People Ask Online & Offline

1. FAQ on CIBIL That People Ask Online & Offline

2. The funny thing about life is that one has to depend on others to run the due course. It applies to financial life as well wherein you could require loans to meet your respective needs. Some would even want a credit card to buy groceries, travel & movie tickets and much more. The limited financial resources often make an individual apply for loans or credit cards. But simply getting the loans or credit cards and not using them properly could leave you in a spot of bother. Yes, it could force the lender to reject your loan or credit card application. What happens is the lender pulls your credit report from credit bureaus such as CIBIL to decide on your application. As CIBIL has a greater bearing on your credit life, it would be good to answer a variety of questions pertaining to credit score. Let’s go through the FAQ on CIBIL in this post.

3. FAQ on CIBIL Check out the following Frequently Asked Questions (FAQs) on CIBIL. What is CIBIL? CIBIL is a renowned credit information company that provides credit scores to all those who have had a credit history spanning for at least 6 months to a year.

4. How Does CIBIL Generate My Credit Score? CIBIL generates your credit score based on the monthly reports sent by the member bank or NBFC to the credit bureau. After receiving the report, CIBIL would check every single detail pertaining to repayment thoroughly. This will help CIBIL get a view of the borrower in you and thus assist it in assigning an appropriate credit score.

5. What is CIBIL Score Range? CIBIL score ranges from 300 to 900 in India. A score of 700 and above would be called. Whereas, if you have got a score of 750 and above, it will be termed excellent. A score of 650-700 would be termed average and below 650 would be poor, to say the least.

6. How Frequently Does the CIBIL Score Update? As the repayment pattern can vary around, the CIBIL score would also change from time to time. The credit bureau would update a fresh score in about 45-60 days from receiving the repayment data from the lender.

7. How to Build a Strong Credit History? If you want to ensure a strong credit history, you need to pay all your dues on time. That’s the bottom line. Now, you need to come with solutions to meet the bottom line. Assuming that you are paying off the loan EMI. In such a case, you need to perceive your income differently and spend accordingly to ensure there’s no payment delay or default. Deduct the loan EMI from your net monthly income (NMI) to arrive at the amount that you need to see as your income. If you spend according to that, you would save enough to pay on time and build a strong credit history.

8. If you are, however, using a credit card, try not to use it for every stuff you come across. Figure out your requirements first as well as pick out those that can be easily done away with. Yes, you can avoid late payment on the credit card by just paying the minimum due or an amount above but less than the total due. Continuing with this repayment pattern would mean you raise the debt burden to such an extent that you start delaying or defaulting on the payment. So, make discretionary spends and keep the bill under control.

9. Will I Get a Loan or Credit Card without CIBIL Score? Yes, a CIBIL score holds the key to the approval or disapproval of loan or credit card. But there can be many applying for the first time. Well, these people can get approval based on the existing relationship with the lender, salary accounts or fixed deposits. Loan or credit card against fixed deposits are a type of secured lending. You can get a loan at about 80%-90% of the fixed deposit value. On the other hand, if we talk about credit card, the credit limit would be set at about 80%-90% of the FD value.