CIBIL keeps an eye on you from your very first credit card

For many people in India, CIBIL score is still a vague concept and very few today know what exactly it means. Some people learn of it the hardest way – they apply for a loan or a credit card and their applications get rejected because of poor or sometimes even no credit scores! Instead of waiting for the axe to fall, it would be helpful for you to know as much as you can about CIBIL scores and keep yourself prepared along with being financially secured for a lifetime.

CIBIL scores are maintained and issued in the form of reports. Basically, CIBIL score is a 3 digit score that can be anywhere in the range between 300 to 900, 900 being the highest and the best. CIBIL scores are an indication of how financially secure and sound you are. Many financial Institutions these days have made it compulsory to check your CIBIL score before issuing any line of credit to you –be it loans or even credit cards. Many employers are obtaining a copy of the credit report before letting you join their organizations. Insurers are also known to check your creditability to judge if you are financially stable before they decide to insure you. Phew! Keeping in mind CIBIL scores play such an important role in the life of a common man.

One would ask How can you know what your CIBIL score is?’ Did you know that CIBIL has high data protection standards known as hard enquiries? As an individual, one can also order their own credit report as well as just checking your credit score by submitting a completed application form via post or online with the requisite fee. The score letter or report will be posted to you or provided online.

How do you think CIBIL score is calculated? The prime and common answer to this is your promptness on any form of payment of your loan or credit card, apart from making your bill payments on time. Not many people are aware that even delay in bill payments, could be a basic mobile bill can considerably bring down their CIBIL score. Also, number of credit accounts held and how long they have been opened for, usage of credit available in credit cards, etc are umpteen number of reasons why your CIBIL score can be really high, or even really low.

To keep it simple, stay prompt and make your payments on time to continue having CIBIL score and save yourself from being black marked. Do not let CIBIL score stop you from living life king size.

CIBIL Score and bill payments