What is CIBIL Score?

So you want to know about CIBIL Score, okay, let’s go. We’ll tell you what the hell a CIBIL Score is in the world’s simplest definition. So, suppose any man in your neighborhood, his name is Ramesh do goverment job, waiting for eighth pay commission which increased his basic salary, One of your neighborhood Seths is named Kantilaal. So Kantilaal gives money on interest to whoever wants it. Ramesh takes money, gives it back on time, takes money again, gives it back on time, keeps taking money and returning it on time. His credit, in the eyes of Kantilaal Seth, keeps increasing. Now he can take as much money as he wants. This is what a credit score is. When you go to a bank for a loan, the first thing they notice would be your Cibil Score . CIBIL Score tells how much money this man has taken, if there is any unpaid loan by this man, and what is the valuation of his money behavior. All these things together — this is what a CIBIL Score is. • It is 3 digit number • It is created by TransUnion CIBIL

Why CIBIL Score is Important for loans?

So this is like your history, your biography in finance. This tells the bank that the loan being given to this man — is this man credible, has this man paid his loans on time, and many such things.

How to improve CIBIL Score?

Give money on time, whether it is EMI or your electricity bill. Use less than 30% of your limit. Don’t use cash from your credit card.