Keeping a tab on your credit score is extremely important in today’s loan-intensive lifestyle. Credit reports today have become mainstays of any card or loan application. They disclose how your past behavior has been with respect to secured and unsecured debt. Therefore, banks look at an applicant’s credit report before making any decision. Simply put, a three-digit number disclosed in your CIBIL credit report can explain your entire credit history. This 3-digit number outlines:
- Credit cards and loans currently active under your name
- Your attentiveness towards loan repayments and credit card bills
- Record of each default and late payment
- Number of applications submitted for loans and credit cards
In the current scenario, your credit score is checked for every sort of borrowing from the bank, including Personal loan, Home loan, Car loan and even a business loan. So your chances of getting the loan depend on your credit worthiness which is reflected through your credit score. Generally, a 750 to 800+ credit score is considered good for a loan application and anything below 600 brings along the tag of a risky borrower with it.
This infographic is a step–by-step guide to download your CIBIL report. Use this to monitor your financial habits. Also, according to the new RBI norms, a base level credit report will be offered for free from the year 2017.