A CIBIL score is a three-digit number that represents your creditworthiness based on your credit history. It ranges from 300 to 900, with a higher score indicating better creditworthiness.
Uses of CIBIL Score:
- Loan Approvals – Banks and financial institutions check your CIBIL score before approving loans like home loans, car loans, or personal loans.
- Credit Card Approvals – A high CIBIL score increases the chances of getting credit cards with better benefits.
- Interest Rates – A higher score helps you get loans at lower interest rates.
- Higher Loan Amount – If you have a good score (750+), banks may offer you a higher loan amount.
- Faster Loan Processing – A good credit score speeds up the loan approval process.
- Job Screening – Some employers check credit scores for financial roles.
How to Improve CIBIL Score?
- Pay your credit card bills and EMIs on time.
- Keep credit utilization below 30% of your credit limit.
- Avoid too many loan inquiries in a short period.
- Maintain a good mix of secured (home/car loans) and unsecured (personal loans/credit cards) credit.
- Check your credit report for errors and get them corrected if needed.
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A CIBIL score is a three-digit number that represents your creditworthiness based on your credit history. It ranges from 300 to 900, with a higher score indicating better creditworthiness. Uses of CIBIL Score: Loan [...]