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Thursday, August 09, 2018

Importance of CIBIL Score and How To Check CIBIL Score


Importance of CIBIL Score and How To Check CIBIL Score

It could seem like a daunting and difficult task to apply for any kind of loan and people do not want to opt for it because they do not want to get into the long term financial commitment of loan repayment through the EMIs each month. 

Those who do not have sufficiently high income fear this all the more when in reality, loans are meant to sort this very problem. A lot of factors are taken into account when a lender decides to approve a loan and one of them is the CIBIL score.

The CIBIL score denotes the credit score of an individual and it is important to check credit score before one applies for the loan. A poor credit score will just be a reflection of poor financial history and the loan application could be rejected. 

If this keeps on happening over a period of time, then the credit score dips even further and it might become really difficult to get approved for the loan in future. Hence, one should start working on the score if one already has plans to apply for a loan in future.

Although different creditors would have different criteria for the CIBIL score, a score of 700 and above will induce many creditors to look into your loan application as it is considered quite a strong score. If the score is, on the other hand, below 600, then it would be a good idea to work towards it and improve the score and then apply. 

One can keep a few things in mind, like lowering the credit card debts and clearing up any default payments all of which can lead to a debt trap.

Not clearing up unpaid bills is definitely one of the detrimental factors that can lead to a poor CIBIL score. Of course, some borrowers have a long standing working relationship with their lenders and a sudden dip in the score can be overlooked. 

However, such scenarios are rare and it is important for small businessmen not to let their score dip beyond a certain point. To improve CIBIL score in case it is very poor, one can also consult a professional about how to turn around one’s finances and it is important to stick to the advice he offers.

Apart from securing the loan, checking one’s own CIBIL score from time to time will also give an individual a sound knowledge of understanding one’s own finances. 

There are cases where a passionate businessman, who has the zest for business, but not the financial knowhow, often rush into financial decisions and then pay the penalties of not being able to keep up with the payments. 

Such scenarios could be avoided if only one knew better about one’s own finances.

The credit rating of an individual is something that will be a constant companion and anyone who is applying for any kind of loan will always be in need of this score. Mostly the creditors will themselves acquire all the necessary data about the credit score from the CIBIL, but one can also apply to check one’s own score. 

For this, they can easily contact their bank to provide it for them or one could also apply at CIBIL and get the score in turn for a very small fee. Checking the score from time to time will help one to have better control over their finances and this will go a long way in preventing someone from making bad financial moves. 

To check CIBIL score one can log into the official CIBIL website and register with details.

Importance of CIBIL Score and How To Check CIBIL Score Reviewed by S. Chitra on August 09, 2018 Rating: 5 Importance of CIBIL Score and How To Check CIBIL Score It could seem like a daunting and difficult task to apply for any kind of loan ...

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