Credit score India
CIBIL Score is a 3 digit number extend between specified limits from 300 to 900. Here we explained about what is good credit score in India and cibil score check.
- The more you score to achieve 900 the greater you get credit card approval process. A good credit score is considered to be more than 750.
- CIBIL Score is a summary of the individual’s credit history. Credit Information Report is being prepared for the individual by credit history. The regular repayment of the loan amount. The payment should be on time period of the due date.
- The online CIBIL Score for personal loan approval is about 750. Above 750 is the creditworthiness of the individual without irritating.
- Bad CIBIL Score will not helpful when facing urgency. A medical emergency is an example to say. Bad CIBIL Score will not be helpful. But these may be cleared by getting help with Credit Help India. They will guide you the overcome from the bad credit score of CIBIL Score. Follow their terms and conditions will be helpful on how to improve your cibil score.
All credit cards there is a limit for consumption. Credit Utilization Ratio (CUR) having a certain limit for all credit card to the utilization.
For Example, The credit having a limit for 100000 the usage of the credit card is about 75000 then the Credit Utilization Ratio is about 75%.
Frequent purchases on credit basis will make your credit score low. By using 30% and lesser the 30% of credit card and repayment of credit balances will gain CIBIL score.
Good CIBIL score is said to be:
- 300-900 is the range of CIBIL score value.
- 750-900 is the range of good CIBIL score.
- 650-750 will the most of individual facing rejection on loan applying.
Good CIBIL score ranges are above 750 is to be resolving balances about 20-30%. If the CIBIL score ranges are between 650 and 750 then the resolving balances will be in high percentages like 40-50%. Even one late payment can drop your CIBIL score value by 60-70. If it is continued for two or three months then it may decrease score value by 90-100. So make sure that the CIBIL score ranges to be in the good value. Late payment of credit balances by two or three months will affect even after two or three years when the individual planning to get a loan.
Disadvantages of high Credit Utilization:
- Monitor the balance of your credit card. There is a limit for the borrowers to use the card. Maximum utilization of credit card is being considered as credit hunger. There is a limit ratio to determine credit utilization.
- Try keeping the credit utilization under 30%. Frequent purchases on credit basis will make your credit score low. By using 30% and lesser the 30% of credit card and repayment of credit balances will gain healthier score.
- High Credit utilization denotes that having a high chance of negligence of repayment by the customers. Therefore the bank gives credit cards to the person who is having a high credit score. 760 of CIBIL score individuals get a credit card with good interest rates and high credit limit. Because they are regular repaying customers to their bank.
Multiple Credit cards being useful:
Utilization of more credit cards will be helpful for maintaining minimum cibil score for credit card. The advantage is said to be every card have a credit limit on it. High usage of a single credit card will make your credit score low. For good CIBIL score maintaining of 30 percent to 40 percent will go good. Mostly 30% and below utilization is better for good CIBIL score.
1. Having SBI credit card which has a credit limit of 100,000.
2. Having Indusland Bank credit card which has a credit limit of 50,000.
The cardholder needs an amount of 40,000. Using of 40,000 in SBI will cause Credit Utilization Ratio at 40 percent. And using of 40,000 in Indusland Bank credit card will cause Credit Utilization Ratio at 90 percent.
Therefore it’s best to use multiple credit cards for good CIBIL score. By using of 30,000 in SBI Credit Card and 10,000 in Indusland Bank credit card. The Credit Utilization Ratio for SBI is at the percent of 30% and Credit Utilization Ratio for Indusland Bank credit card percent will be at 20%. 30% and 20% of credit utilization will be good for CIBIL Score calculation by the bureaus.
The calculation of the credit score of the bureaus will be separate only. One will not affect another. This will maintain good CIBIL score will is to be maintained.
Advice to the Credit Card Customers:
- Use the credit card when it is needed.
- Easy to gain debt if the customer uses the credit for all time and fails to pay the bills on time.
- Customers are advised to pay the full amount if possible not only the debt amount.
- Cardholders must understand their card limit and credit scores values, with them in mind they should use or purchase with the card when it is required.
- Try purchase by using a debit card or cheque or you can pay by liquid cash.
- If you are spending more take a step back and be a regular payer of debt amount in time and use the credit when necessary.
- To maintain your credit score at a good level ask your bank or the provider of the credit card spending limit to increase.
1) Having 40,000 credit utilization of 100,000 spend limit card the Credit Utilization Ratio will be 40 percent.
2) If the spending limit of the card is increased to the amount of 150,000 then the 40,000 utilization of credit will be by 26 percent.
Therefore ask your credit card provider to increase the credit access limit for a good credit score if not available use your credit your credit utilization at the minimum level or apply for multiple credit cards. Request a raise to your credit limits by calling the credit card company. If they can raise the credit limit with a soft pull, since there will be a hard inquiry will appear under new credit.
Before opening a new credit card, clear the old credit card balances. If the old credit card which has been cleared with good CIBIL score, maintain that old credit card. It is being helpful to get a loan with the CIR report of CIBIL score. Keeping a good account as long as you can by not closing the credit card account will be a solid proof for repayment history.
A credit card should be used regularly:
For bureaus, it is negligible to calculate and consider a new individual for an unsecured loan and improve credit score. To get the good credit score make sure to pay the payment and repayments on time. Before the due date, it is important to consider that the individual pays off the interest amount on the correct time.
To build a healthy credit score it takes time, within a month or two the improvement in credit score cannot be possible. It takes about six to a year to build the credit score.
Always use the credit card for once in a month. Not using credit cards may not be healthy for credit score evaluation.
Influence of credit card payment delayed:
Missing of payment or lower payment or forgotten to pay the credit card payment will impact the customer in a way which decreases in credit score, increase in debt amount and make you pay more and more for the consideration.
The individual’s credit payment statement states that the balance of payment should be of 10000, the debt is being missed to pay for the month or reduce in payment about 1000 the balance amount of 9000 will be considered as debt and interest payment done for month will be considered as 700 as interest amount and the balance amount be only considered as principal amount.
For the next month due to the balance of repayment about 9700, if there is any add on the value of credit purchases which is also added with the balance amount and totally being paid.
This type rising in the debt amount will be riskier for the payee while paying the credit amount.
Planning on closing credit card:
If the individual is planning on closing the credit card, before closing the credit check whether the spending limit for the card is increased or not. If the spend amount is not improved then put the account as opened try using the account for a while to increase the score and spend limit increase.
Procure a loan:
To get a loan, smart way to move is to get a personal loan or secured loan by using security. Credit cards repayment is quite a lot to be paid. For the repayment, the amount of interest rates is considered being high for monthly installments.
In today’s market credit cards are being used high for financial use. Credit cards not just allowing the customer to borrow of money against the credit line, but also make them use of offers for trips, discounts, coupons, and others also. Using these offers carefully will maintain a good credit score or how to improve cibil credit score.