A CIBIL score is defined as a number that can judge the creditworthiness of a person or the capability of repayment of any debts. It is a three-digit number and varies between 300 to 900. A score closer to 900 signifies a good CIBIL score, and it is decided that the person is capable of paying off his debts with ease. While a score on the lower side closer to 300 signifies poor financial health and that the person may not be able to pay off his debts with ease. Who computes the CIBIL score?The full form of CIBIL is Credit India Bureau (India) Limited. It is a credit bureau dedicated to the task of maintaining the credit history and activities of companies as well as individuals. The CIBIL score of a person is usually checked before approving any loan or credit card to a person to make sure that the person is able to pay off any new debts. Which factors determine CIBIL score?The score is determined based on certain factors like the payment history, credit exposure, credit type, and duration of the person. The payment history is the most important factor in determining the credit history of the person. A delay of even 30 days in paying any installments or debts can hamper the credit score negatively by almost 100 points. Credit exposure is also defined as the credit utilization ratio. The higher is the ratio. It is signified that the person is credit-hungry. One should look at keeping the utilization of credit limit to only 30% of what is available for him. However, for a good credit score, one should keep the credit utilization to 10% of the total limit. The credit type of the person, like having both secured and unsecured credit in his history, signifies that the person is capable of managing both types of credits ad can comfortably pay off any new debts. How to improve CIBIL score?Maintaining a good CIBIL score is important for any loan or credit, and in case one has a poor credit history, there are ways to improve it. One should repay the borrowed amount to the lender without delay, along with interest based on the terms and conditions of the loan. It is important not to borrow any amount that is difficult to pay off, resulting in piling up of the debt and impacting the credit score. Before using any credit, one should consider all the pros and cons of that mean of credit and affect his credit history and score. How to check the CIBIL score online?Many apps and websites that offer loans nowadays have the option of providing free credit scores online in just a few minutes. This facility is available for applicants when they apply for new loans or credit cards. For availing of the service, the applicant has to go to the section of credit score checking and fill up his first and last name. Followed by that, he is required to enter his email id and mobile number, in which an OTP will be sent for verification. Once the verification is complete, the age of the person has to be authenticated, and one can use their PAN card for the purpose. After all the formalities are completed, the CIBIL score is generated and displayed on the screen almost instantly for the applicant and for the purpose of the loan. Download the LazyPay app, get your credit limit and enjoy making those purchases like you never have !!!
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