Do you want to approve a LOAN or avail a CREDIT CARD???
Then you are not alone asking for it; your credit history is following you. You might wonder what a Credit history is. The Credit history is a report of the number of giving bank loan you have, types of loan accounts, your outstanding debts and your payment history. That means the complete details of your past loans and how you behave with the payments of those loans. How many time your loan got rejected by the banks? How you do the repayments of credit cards.
How much CIBIL Score accept for giving Bank Loan?
Bank loans happily accept minimum cibil score of 750 or above. But the score between 600 and 750 have chances of getting approval. The banks check the CIR along with CIBIL Score in detail.
- Banks check the Account status of CIR (Credit Information Report). The Action status has information about the credit limit, high credit and EMI amount.
- Bank also checks other fields in your CIR, the field ‘Days Past Due’ gives the information about your amount overdue. Every bank has its own benchmarks for a good CIBIL score. Banks check your EMI to Income ratio.
If you have not a hit CIBIL Score, then you have to start behaving well with your credits.
- To avail a bank loan in the future, you should follow good financial habits. Timely EMI returns filling, avoiding bulk repayments and maintaining a good credit card balance are some of them.
Well, the question now changes to who creates your credit history and from where did your past information get highlighted?
CIBIL (Credit Information Bureau (India) Ltd.) is a private Credit Information Company that generates your credit history. And the CIBIL SCORE is the grade you earn out of your credit history.
In very simple and sweet words, CIBIL Score is your first impression to the lender. The definition of CIBIL Score as per CIBIL itself is “India’s first generic risk scoring model for banks and financial institutions”.
CIBIL score is a numeric value ranges from 300 to 900. But in case there is no information found, then its value is -1. Well, CIBIL is not the only one that highlights your credit history. It has some friends. It just maintains a database of the information that the financial institutions and banks provide it. Yes, the same lenders, whom you’ve borrowed from.
“Behave well in your financial life”, to get a GOOD CIBIL SCORE.