Factors affecting your CIBIL score

Credit Information Bureau (India) Limited (CIBIL) is a credit bureau or credit information company, engaged in maintaining the records of all the credit-related activities of companies as well as individuals, including credit cards and loans.

Credit Score
300 – Very Low
900 – Very High
750-900 is a decent score.
Lower your CIBIL score higher is the rate of interest.

1. Repayment History

Timely repayment of your past loans.

2. Mix of Loans

Unsecured loans (no collateral) – Personal Loans, Credit Card Loans
Secured laons (with collateral) – Car/Bike Loans, Home Loan
More Unsecured loans leads to lower CIBIL score.

3. Credit Limit

Usually calculated as
Credit Limit = 50% of Montly Salary x 100
eg. Credit Limit = 25,000 x 100 = 25,00,000

4. Multiple loans at one time

More loans in a short duration of time, negatively affects your CIBIL score.

Bonus Tip: If you are related with someone who has defaulted any type of loan then your CIBIL score is also negatively affected.

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