In the world of personal finance, your CIBIL score plays a critical role. Whether you are applying for a business loan ,personal loan, home loan, or even a credit card, your credit score report can be the deciding factor. In this blog, I’ll share my personal experience—how maintaining a good CIBIL score helped me secure loans effortlessly and how a dip in my score once caused me to run from bank to bank, struggling to get approved.
A CIBIL score is a three-digit numeric summary of your credit history, rating your creditworthiness. It typically ranges from 300 to 900. The closer your score is to 900, the higher your chances of getting loan approvals with favorable terms.Now if you take a loan from any lending institutions whether its banks of NBFC’s ,your delay or non payment of dues will be tracked by the credit agencies and they will start maintaining a detailed report of your loans taken , payment made on time ,if delayed than the number of days of delayed etc.This report which is maintained by different credit agencies is called a credit report and the credit report which is generated by the organisation called CIBIL,CIBIL (which stands for Credit Information Bureau India Limited, is a credit information company in india) is called CIBIL REPORT.
Maintaining a good cibil score is very very important whether you are a business man or salaried person or anyone who may need a loan from banks .A low CIBIL score will decrease your chance of obtaining loan from a bank and a bad cibil score will never let you obtain any loan from any bank.
A few years ago, I decided to apply for a personal loan to fund my home renovation. Before applying, I decided to check my free credit score online. To my delight, my CIBIL score was 812. I got my credit score report free from a reputed financial website. The process was quick, easy, and absolutely free.
Armed with a good score, I walked into a bank and applied for a loan. Not only was my application processed quickly, but I was also offered a low-interest rate. The whole process was smooth, and I realized how valuable it is to maintain a high credit score.
But things weren’t always this easy. A few years earlier, due to some financial mismanagement and a few missed EMI on a previous loan, my CIBIL score had dropped significantly. I didn’t realize it until I applied for another loan.This time I had applied for a housing loan and it was denied in my first attempt.
I then started visiting different banks and NBFCs, trying to convince them to approve my loan. Most of them rejected my application immediately after checking my low score. A few were willing to lend small amount but at very high interest rates.
That phase was truly stressful. I learned that even a small delay or non-payment could impact your creditworthiness for years.
But was very determined to correct my mistakes and never miss my any further EMI’s of my loan for the next few months.with my positive steps and financial disciplice my CIBIL score increased gradually and i was able to get the home loan after 1 year.
I have learned now that I could have got my home loan much earlier and at a very low interest rates if i had maintained my high cibil score.
Today, it’s easier than ever to stay updated about your credit score. Here’s how you can check your free credit score:
It’s advisable to check your score at least once every three months.
When it comes to your financial profile, your CIBIL score (or credit score) is one of the most important numbers. But how do you know what’s good, what’s average, and what’s considered bad?
Let’s break it down:
An ideal CIBIL score is 750 and above. This range signals to lenders that you are a responsible borrower who repays loans on time and manages credit well.
The worst CIBIL score you can have is 300, which indicates a very poor credit history. It often results from frequent defaults, missed EMIs, or excessive loan/credit card applications.
According to industry data:
Different banks and NBFCs (Non-Banking Financial Companies) have their own policies, but here’s a general guideline:
| Type of Loan | Minimum Credentials |
|---|
If your score is low, don’t worry. Here are some proven ways to improve it:
Your CIBIL score is your financial passport. A good score opens the doors to financial opportunities, while a low score can be a roadblock. I’ve experienced both ends of the spectrum. That’s why I always monitor it, ensure timely payments, and keep my credit usage in check.
If you’re planning to apply for a loan, take a moment today to check your free credit score. Knowing your credit score report free can help you take better financial decisions—and avoid the mistakes I once made.
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