Majority Of Borrowers Unaware Of Their Cibil Score

A recent research across 7 Indian cities by an entity called Home Credit India, a provider of consumer finance, brought out a worrying statistic. As many as two out of three borrowers who participated in the survey were completely unaware of their CIBIL score. What’s even more worrying is the fact that most of the individuals who participated in the survey had availed loans, some multiple even, and yet they have no idea of their CIBIL score. As a nation, … Continue reading “Majority Of Borrowers Unaware Of Their Cibil Score”

A recent research across 7 Indian cities by an entity called Home Credit India, a provider of consumer finance, brought out a worrying statistic. As many as two out of three borrowers who participated in the survey were completely unaware of their CIBIL score. What’s even more worrying is the fact that most of the individuals who participated in the survey had availed loans, some multiple even, and yet they have no idea of their CIBIL score.

As a nation, though we’ve come a long way with respect to financial inclusion, we’re still behind when it comes to financial literacy. And that’s something that we’re hoping to change with this article.

What is the CIBIL Score?

The CIBIL score is basically an indicator of the credit worthiness of an individual. The Credit Information Bureau India Limited, which is an RBI-registered credit rating agency, is the entity behind the CIBIL score.

The score ranges from 300 to 900, with 300 being the lowest and 900 being the highest. The CIBIL score of an individual is widely used by lenders and financial institutions to determine their credit worthiness. That’s not all. Depending on the CIBIL score calculation of an individual, the interest rates of loans can also vary.

For instance, an individual with a low CIBIL score may have to pay a higher rate of interest than an individual with a high CIBIL score. Therefore, the higher the score, the better your chances are at getting a loan and that too at attractive rates of interest. 

Why Should you Check your CIBIL Score?

Now that you know how important the CIBIL score is, let’s take a look at why you should check your CIBIL score periodically.

The CIBIL score is not permanent and is constantly fluctuating. Every single loan that you avail, EMI repayments that you make, and the amount of credit that you avail, are few of the things that influence your score.

Availing too many loans, paying your EMIs past your due date, and pushing your credit utilization to the maximum can bring your CIBIL score down. On the contrary, availing fewer loans, paying your EMIs on time, and keeping your credit utilization below 50% can all work towards enhancing your credit score.

This is precisely why you should check your CIBIL score periodically. By keeping a constant eye on the score, you would basically be putting yourself in a better position to track your progress. And if there has been any lapses, you can take corrective measures on time before it causes any further damage to your score as well.  

Conclusion

So then, what’re you waiting for? Go ahead with your CIBIL score calculation right away. If you’re unsure of where to check your CIBIL score, simply head on over to Finserv MARKETS. You can get a comprehensive financial health check report done that will not only let you know of your CIBIL score, but will also provide you with suggestions to improve it. That’s not all. At Finserv MARKETS, you can also get some more in depth information on CIBIL score as well.

Majority Of Borrowers Unaware Of Their Cibil Score

A recent research across 7 Indian cities by an entity called Home Credit India, a provider of consumer finance, brought out a worrying statistic. As many as two out of three borrowers who participated in the survey were completely unaware of their CIBIL score. What’s even more worrying is the fact that most of the individuals who participated in the survey had availed loans, some multiple even, and yet they have no idea of their CIBIL score.

As a nation, though we’ve come a long way with respect to financial inclusion, we’re still behind when it comes to financial literacy. And that’s something that we’re hoping to change with this article.

What is the CIBIL Score?

The CIBIL score is basically an indicator of the credit worthiness of an individual. The Credit Information Bureau India Limited, which is an RBI-registered credit rating agency, is the entity behind the CIBIL score.

The score ranges from 300 to 900, with 300 being the lowest and 900 being the highest. The CIBIL score of an individual is widely used by lenders and financial institutions to determine their credit worthiness. That’s not all. Depending on the CIBIL score calculation of an individual, the interest rates of loans can also vary.

For instance, an individual with a low CIBIL score may have to pay a higher rate of interest than an individual with a high CIBIL score. Therefore, the higher the score, the better your chances are at getting a loan and that too at attractive rates of interest. 

Why Should you Check your CIBIL Score?

Now that you know how important the CIBIL score is, let’s take a look at why you should check your CIBIL score periodically.

The CIBIL score is not permanent and is constantly fluctuating. Every single loan that you avail, EMI repayments that you make, and the amount of credit that you avail, are few of the things that influence your score.

Availing too many loans, paying your EMIs past your due date, and pushing your credit utilization to the maximum can bring your CIBIL score down. On the contrary, availing fewer loans, paying your EMIs on time, and keeping your credit utilization below 50% can all work towards enhancing your credit score.

This is precisely why you should check your CIBIL score periodically. By keeping a constant eye on the score, you would basically be putting yourself in a better position to track your progress. And if there has been any lapses, you can take corrective measures on time before it causes any further damage to your score as well.  

Conclusion

So then, what’re you waiting for? Go ahead with your CIBIL score calculation right away. If you’re unsure of where to check your CIBIL score, simply head on over to Finserv MARKETS. You can get a comprehensive financial health check report done that will not only let you know of your CIBIL score, but will also provide you with suggestions to improve it. That’s not all. At Finserv MARKETS, you can also get some more in depth information on CIBIL score as well.