How to protect your CIBIL score

CIBIL score is a 3 digit numeric number that indicates your credit and financial health basically it is not only reflects the past but is also a reflection on the future. The score is calculated and provided by Credit Information Bureau (India) Limited (CIBIL) which is the first bureau in India.

 Once you understand the importance of a CIBIL Score, you should know why lenders (banks/NBFC) want to know your CIBIL Score. Lenders can get an estimate about the person’s past record in making timely payments. CIBIL Score helps the lender make a logical guess about the person’s creditworthiness for the future.

You can access CIBIL Score and understand your eligibility for the loan.

Payment history plays an important role in your score card. Late payments indicate that you are having problems in fulfilling your obligations. It is also important to maintain a proper mix between secured and unsecured loans.

Check your CIBIL credit report: After you get your credit score please check if your name, age, dates of birth, PAN numbers are accurate. If not, report this to CIBIL immediately. Then check for the accounts held and loans being services under your name.

Maintain a good Credit Mix It is advisable to have a good mix of secured (home loan, auto loan) and unsecured loans (personal loan, credit card)

Pay your dues in full: Every bill will show you minimum amount due. Don’t get excited that the amount is much lesser than what you actually owe the bank. Always pay your entire amount, because the remaining amount will show as overdue in your CIBIL score,

Anybody can get their CIBIL score by visiting the CIBIL website and paying the required amount. Once you know about your position on the CIBIL Rating Scale you be preemptive about the loan processing.