While applying for a personal loan, home loan, car loan or any other, you might have noticed that you are asked about your CIBIL score which is the evidence of your creditworthiness. It always varies on the financial transaction. Sometimes with a delay in repayment, the CIBIL score can fall dawn. And on the other side, your timely repayment enhances your credit score as well. With these questions, you might have various queries like what is the highest CIBIL score in India, how can I improve it, what are the factors that affect the score and what are the ways to improve it. Let’s have a brief details and range of the CIBIL in details.
The range of CIBIL scores
CIBIL score starts with 300 and the highest CIBIL score is 900. So, there are different ranges of credit scores and it reveals the creditworthiness of any individual. The CIBIL score starts with 300 because below 300 is considered as Nill which means there is no credit history. It goes up to 900 which is considered as maximum and excellent. However, above 750 you don’t have to face any difficulties while getting any financial assistance, especially when your income is fair and stable. Different ranges of CIBIL scores are as follows:
300 – 599: The number says that anyone having this score has poor creditworthiness. Which means that he might face trouble while getting the personal loan. In many cases, his loan application can be rejected.
600 – 649: This number states that the person having such a score has fair creditworthiness but it can’t be treated as good. However, it may depend on the lender’s policy as various lenders consider these scores also for the approval of a loan.
650 – 749: With this score, the person comes under the regime of good creditworthiness which means, they can apply for a personal loan, credit card or any other loan because from this score the chances increase to enhance the credit score.
750 – 849: It’s the desired range which is always preferred by the lenders and it comes under very good creditworthiness. If you have a credit score above 750 and also have a higher salary, you can easily apply and get a personal loan with fast approval.
850 – 900: Ultimately the CIBIL above 850 to 900 is treated as excellent creditworthiness where the highest CIBIL score is 900. There are different benefits of a higher CIBIL score such as easy loans with affordable and lower interest and many more.
How to improve CIBIL score
There are different ways to improve the CIBIL score such as frequent borrowing, timely repayment, limited usage of credit cards and many more let’s know them in brief.
Apply for the loan amount with eligibility
Before applying for a loan, always check your eligibility that what is the maximum loan amount you can get. Because a higher loan amount may be the root cause of your loan rejection. Repeating this will hamper your score.
Use the limited credit limit
While using your credit card always try to limit your expenses and try to ensure that you are not using more than thirty percent of your credit limit. Because it will create difficulties in the repayment or affect your credit score.
Repay the loan amount on time
Always try to repay your loan amount on the repayment date because getting delay in the repayment will affect your credit score.
Apply for a short-term loan
If you are borrowing a small amount repeatedly, your credit score will be elevated. It always helps you ensure a higher score because of easy repayment and short tenure.
Conclusion
CIBIL score is the evidence of your creditworthiness which matters while proceeding with the loan application or while applying for a special credit card with the distinct features. So, if you have a lower score and want to enhance the credit score for better financial assistance, always try to follow the aforesaid guidance i.e., apply for a short-term loan and repay on time, use the lower limit if credit card and always be alert for the repayment of the loan. All these techniques will help you enhance your score and over time, you can get the highest CIBIL score for fair easy financial assistance.
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