How is your CIBIL score calculated?

Whether or not the bank will lend you, this much depends on your CIBIL score. It is thus important to know how this score is calculated. By the way, many types of complex multiplication are done to remove it. But, this is the most necessary loan repayment trend. This means that if you are honest in repaying the loan, the bank will also show interest in giving you the loan.

Let's see here what exactly is the Cibill score and how to calculate it.

What is Cibill score?

Cibill score is a number of 3 digits. A report is based on this. This is called a civil report. It contains all of your credit history information. It is addressed by the details of 'accounts'. It contains a credit card or loan account, the status of their payment and the sequence of the days left to repay them.

The score shows the eligibility of borrowing. This is based on the previous record of paying the loan and the ability to return it to you. The range of this score ranges from 300 to 900. The higher the score, the more likely it is to get a loan. The fact is that 79 percent of loans are given after seeing the Cibil score of more than 750.

How CIBIL scores are calculated?

There are four important things that affect your civil score:

1. Payment History: Filling or defining late EMIs has an adverse impact on your civil score.

2. Credit Mix: Having a merged cumulative and unsecured loan has a positive effect on your credit score.

3. Frequent inquiries: Having too much inquiries about the loan has a negative impact on your score. This indicates that your loan burden may increase in the future.

4. High Credit Utilization: High credit utilization limit indicates the increase in debt over time. It does not have a good effect on the score.

How can you improve your CIBIL score?

If for some reason your civil score is not good then we are telling here how it can be corrected:

Always pay your outstanding bills on time. Banks do not consider late payments to be good.

-Don't use credits too much. Prevent expenses.

Make a balance between secured loans like home and auto loans and unsecured loans such as personal and credit cards. Too much unsecured loan is not considered good.

- Have a Joint Account Holder, then look at the joint account holder. The negligence of the joint account holder also has a bad effect on your credit score.

Surely, review credit history from time to time. Keep an eye on your civil score. By regularly checking the report, you can correct any mistake by the bank.

If you do not want to get the chance of getting a loan in the future, you will get involved in an effort to improve your civil score from today.