it is because it indicates that you need more credit. a lower percentage means there is more room for you to clear your loan.Ī lot of people are not aware, but a high credit card balance can lead to a lower CIBIL score. If this ratio is high, your CIBIL score will be low. in this scenario, no lender will be keen on extending credit to you. it is an indication that you are incapable of clearing your credit. When you default on your loan or your lender writes-off your loan, it adversely affects your credit score. delays in payments can impact your score negatively. it includes consistently paying all your credit on time and in full. The way you have been repaying your past loans have a key role to play in your CIBIL score. here is a list of the factors that impact this credit score. owing to this, they may refuse to grant you credit.Īs mentioned above, your CIBIL score depends upon your credit behaviour. it means that any credit extended has a high chance of turning into a bad loan. if it is not satisfactory, they consider you to be in a high-risk category. when you visit a bank or a non-banking financial institution with an application for new credit, they check your CIBIL score. of course, provided that everything else is in place. a score above 750 can get all your loan and credit cards applications approved. this number varies 300-900 and a score above 700 is generally considered good. based on this information, it gives a three-digit score to the individual, which is commonly known as the CIBIL score. furthermore, it collates the data if the person has been regular with the EMIs of the loans and the credit card bill payments.
for instance, it gathers the data of all the credit cards and loans that the person has taken. the information that it collects demonstrates the credit behaviour of the individual.
to do so, it collects the financial information of individuals from banks and other financial institutions. it is a premier agency that provides credit reports and scores of individuals. the best way to avoid such detrimental situations is by checking your CIBIL score regularly.ĬIBIL is short for Credit Information Bureau (India) Ltd. several people make such mistakes and find themselves on the wrong side when they apply for new credit card. although they would repay the amount with interest, they never realised the impact it was having on their creditworthiness. it turned out they had been missing their credit card payment dates. it was because their CIBIL score was unsatisfactory. they visited several banks, but the answer remained the same. despite the hefty amount that was coming into their accounts every month, the bank declined their loan applications. they were in for a shock when they applied for a home loan. vacations meant flying overseas or indulging in only the finest experiences around the world.
gifts for birthdays and anniversaries meant shopping only from luxury brands. both of them earned well, and with no responsibility of kids, could afford a luxurious lifestyle. Mr X and his wife, Mrs Y, were a DINK (double income and no kids) couple.