CIBIL is a bureau who can collect all the data of your credit card usage and send to the lenders. They can see your credit card utilization, how you can maintain the balance, spending habits and more.
The main purpose needs to control the CIBIL score. Now you may be thinking, what is the CIBIL score? Through the credit score calculation, the lenders can provide services. The range starts from 300 to 900. If your score is less than 650 so what will happen, or when you have more than 750 so what? To understand both stories, need to know about CIBIL score ranges.
Credit Score Calculation
300 Points: Not a single lender can provide financial support. When the bank can see the score, then automatically put you in reject list.
450 To 500 Score: As you can see as a number it looks good, but still the position is the same. That means you will not get any loan or a credit card.
550 To 600 CIBIL Calculation: You can have a chance to get approval for financial support from the bank. Before that, should start paying all utility bills on time without any delay.
650 To 700 Credit Score: As per the bureau if your score is more than 650, the bank can give approval. But with this score, a few banks can provide services with the high-interest rate.
750 To 800 Points: You can achieve a good score. With this, you can get all services with the low-interest rate. The lenders feel happy to help you.
850 To 900 Credit Score: It’s a high score and green single for you. It shows you know the payment, repayment, or payback value. That’s why the bank can give instant approval for anything like a credit card or loan.
Do You Know The Things That Can Improve Your CIBIL Score?
You should keep in mind four simple steps which can control your CIBIL score and save you from defaulter list.
Use Your Card: After getting the card, if you are not using it, that thing can also destroy your points. That’s why check your points from time to time and utilize your beneficial features.
Pay The Bills On-Time: It’s an important task if you want instant approval for a loan. Pay all utility bills on-time can show your responsible behavior. To get the highest credit score need to control all the things from the bottom to top means pay bills before the due date and save CIBIL score.
Never Use The Full Credit Limit: If the bank can give 50% of the loan limit, it doesn’t mean you have to use it within one month. No, the lenders can check your utilization. The less you can use it the more can get benefits.
Never Make Too Many Applications For Credit Cards: With each application, they can inquire your previous credit limit. When the bank can inquire, the score goes down. That’s why never make too many applications it can damage your points.