Your CIBIL Score is one of the most important aspects of your financial profile. A good CIBIL Score is essential to secure loans and credit cards at better interest rates. In this article, we will discuss the factors that influence your CIBIL Score and how to check your CIBIL.

What is a CIBIL Score?

A CIBIL Score is a three-digit number that ranges from 300 to 900, which represents your creditworthiness. Your CIBIL Score is calculated based on your credit history, including your credit card payments, loan repayment history, and other credit-related activities. A good CIBIL Score is essential to secure loans and credit cards at better interest rates.

Factors influencing your CIBIL Score

Payment History: Your payment history is one of the most crucial factors that influence your CIBIL score. Late payments, defaults, and settlements can adversely affect your credit score.

Credit Utilization: Your credit utilization ratio is the percentage of your credit limit that you use. Relying heavily on credit, as reflected by a high credit utilization ratio, can have a detrimental effect on your credit score.

Credit Mix: Your credit mix refers to the variety of credit accounts you have, such as credit cards, loans, and mortgages. A diverse credit mix can positively impact your credit score.

The length of your credit history is also an essential factor that influences your CIBIL Score. A long credit history with a good payment history can positively impact your credit score.

Credit Inquiries: Applying for multiple credit cards and loans within a short period can negatively impact your credit score. These inquiries are visible on your credit report and can signal to lenders that you are credit-hungry.

Understanding good CIBIL Score

A good CIBIL Score typically ranges between 750 and 900. Having a good CIBIL Score indicates that you have a good credit history and are creditworthy. A good CIBIL Score increases your chances of getting approved for loans and credit cards and may also result in better interest rates.

How to check your CIBIL?

You can check your CIBIL Score by following these simple steps:

• Visit the Bajaj Finserv website at bajajfinserv.in/check-free-cibil-score
• Search the “Check Your CIBIL Score” section on the website.
• Click on the “Check Score” link to begin the process.
• Enter your mobile number. You will receive a One Time Password (OTP) on your mobile number.
• Enter the OTP you received and click the “Submit” button.
• Fill out the online form by providing your name, date of birth, PAN card number, and other required details.
• Accept the terms and conditions and click on the “Submit” button.
• Your CIBIL score and report will be displayed on the screen.

Now you have understood how to check cibil score and how it helps you stay informed about your creditworthiness and take corrective measures if required. It also helps you identify errors in your credit report, which can negatively impact your credit score.

How to improve your CIBIL Score?

Improving your CIBIL Score can be achieved by taking various steps, such as:

• Timely payment of your bills: Late payments can significantly impact your credit score. Ensure that you pay your credit card bills and loan EMIs on time to avoid late payment charges and negative impact on your credit score.

• Keep your credit utilization low: Your credit utilization ratio should be below 30% of your credit limit. A high credit utilization ratio can negatively impact your credit score.

• Monitor your credit report: Regularly monitoring your credit report helps you identify errors and take corrective measures. Dispute any errors that you find with the credit bureau.

• Limit your credit inquiries: Limiting your credit inquiries to necessary purchases is advisable as applying for multiple loans and credit cards can have adverse effects on your credit score.

Having a good CIBIL Score is essential to maintain your financial health. Factors such as payment history, credit utilization, credit mix, length of credit history, and credit inquiries influence your CIBIL Score. Regularly checking your CIBIL Score helps you stay informed about your creditworthiness and identify errors in your credit report. By taking corrective measures such as paying your bills on time, keeping your credit utilization low, and monitoring your credit report, you can improve your CIBIL Score over time. So, check your CIBIL Score today and take steps to maintain or improve it if required.