What importance does CIBIL Score Hold in availing any kind of credit facility?

1. What importance does CIBIL Score Hold in availing any kind of credit facility?    Everybody needs a credit facility in some part of their lives. It can be of any type and form - Credit card,  personal loan, Vehicle Loan, Home Loan, etc. In order to take any kind of credit, the lenders ensure that the  borrower will be able to repay the loan within the defined time frame. Because it’s important for the  borrower to make sure of this fact, otherwise it would risk the credited amount. So what is one factor  through which lenders ensure this? The answer would be the CIBIL score. With this score, a lender checks  whether an individual is fit enough to give the loan or not.    It doesn’t matter what kind of loan you are opting for, ​CIBIL score​ holds the prime importance in defining  your eligibility for that loan. So first, it’s important to know what is it?     What is the CIBIL score?    CIBIL score is a three-digit symbol of your creditworthiness of any borrower which ranges from 300 to 900  given by the leading credit rating agencies of India. A score between anything between 700 to 900 is  considered to be good by almost all the lenders. Individuals having this range of scores will find it easy to  opt for any kind of credit facility in an hassle-free manner. A good score represents that an individual has a  brilliant repayment behavior and a lender would be more convinced of the fact that he or she would be  able to pay the credit on time. Thus, it will be less risky for a lender to trust an individual with a good credit  score.     Anything below a score of 700 is not considered to be a good score and the individuals find it pretty hard in  availing any kind of credit facility from the lenders becasue of the risk factor they feel with such borrowers.  Their past financial behavior shows that they are not good at repaying the loan. Sometimes, such  individuals have to pay a higher rate of interest in order to get the credit as compared to people with a  good CIBIL score.    How can you improve your CIBIL score to a score of 700 or above?    For all the people with the question of ‘How to improve ​my credit score​ to above 700 or above?’, we will be  telling you some methods to build your credit score gradually. You can have a look at them below.    ● One of the main reasons for having a poor ​CIBIL​ score is a delay in credit card bills or EMI payments  for a period of 6-12 months. So, the first thing you need to do is build a habit of paying your dues  regularly before the due date. When you will do this regularly, you will be able to improve your credit  score.  ● Never use the full limit of credit card regularly because then the lenders will see you as credit hungry  borrowers. Always keep your credit utilization below 40% to enhance your credit score.  ● Never spend beyond your spending capability if your credit score is already poor because a single  delay in the payment will hit the credit score badly. Spend only what you can repay within the due  date without breaking any sweat.  ● Do not make a habit of paying only the minimum due amount, because it will keep piling on and you  will fall into the trap of revolving credit.