What affects your CIBIL Report

Many people believe that a single payment delay won’t hurt the CIBIL credit score if you can quickly catch up with the time lag. This may be partly true. It really depends on the timing of your missed payment and the severity of the payment. If it was just one or two payments that you delayed in the past, it may hurt your score temporarily.

Missed and delayed payments are things lenders frown upon. However it is important to understand the difference between minor and major defaults. Any payments that are delayed or missed less than 90 days are considered minor defaults. This is considered minor because lenders believe that such a default could be cleared

If you have not defaulted and honored your debt obligations, you are likely to get a good credit score. A good CIBIL score is important to improve your creditworthiness if you are planning to take a loan. A bad score means you are going to find it increasingly hard to get a loan or credit card.

What inquires affect credit score:-

1. The impact of credit inquiries will differ from person to person depending on their own unique credit history. An inquiry can have a greater impact if you have lesser accounts and a shorter credit history.

2. Most credit inquiries are required to remain as a part of your credit report for at least one year, and up to two years.

3. Multiple inquiries also raise the red flag about identity theft. It serves to alert you of a possible identity theft in case you have not been making those inquiries.

4. Inquiries remain on a credit report for two years, but they’re included in your credit score for the first year only. This means all of your inquiries over the past two years are probably not being counted in your score.

If yours is a minor default, you can actually catch up with the payment and your CIBIL score will eventually bounce, though not to its original score, but somewhere close.

So try not to miss your payments ever. If you do, catch up with it as quickly as possible

Advertisements