But, did you know what these scores mean?
Your CIBIL score is essentially a numeric representation of how creditworthy you are and ranges between 300 to 900. When lenders provide loans, your interest rate, repayment term, etc., are determined by how risky the lenders perceive you to be.
If your score is high, i.e., above 750, then the lenders consider you to be someone who will repay loans on time and therefore present less risk. Therefore, you will be able to avail loans at lower interest rates.
How is CIBIL Score Calculated
Your credit score is based on multiple parameters such as your repayment history, type of credit availed, repayment duration, existing debt, credit utilization ratio, credit enquiries, etc. All of these will have an impact on your credit score.
Your CIBIL Score Decoded
Curious to find out your creditworthiness? Your CIBIL score can tell you that. Here’s what these scores really mean –
300 to 599 – Poor
It is time to pull up your socks and turn around your financial habits because they could cost you dear in the long run.