What is the credit utilisation ratio? The credit utilisation ratio measures the amount of credit an individual utilises from the credit limit available to them. For example, an individual has a credit card with a limit of Rs. 1 lakh and has utilised the card for Rs. 20,000. In this case, the individual’s credit utilisation … Read more
When you are given a loan’s pre-approval, it usually has a minimal impact on your CIBIL score. This happens because it leads to a soft inquiry rather than a hard inquiry. In other words, loan pre-approval does not influence your CIBIL score in any significant way. Let us understand what is a soft inquiry. Pre-approval … Read more
Maintaining a healthy credit score is vital for financial stability. There are numerous factors responsible for a healthy credit score such as length of credit history and credit utilisation ratio. Additionally, if you are struggling to make payments, consider reaching out to your creditors to discuss alternative payment arrangements or hardship programs. Your bank may … Read more
CIBIL scores reflect your creditworthiness based on your credit history. Banks use this score as one of the key factors in their decision-making process at the time of assessing your loan application. While a high CIBIL score shows that you have a good credit history and are likely to repay your loans on time, banks … Read more
While CIBIL primarily deals with credit information of account holders, it does not directly handle disputes related to fraudulent charges. However, if anything of this sort comes to the fore, it is recommended to place a fraud alert or credit freeze on your credit report with CIBIL. This makes it quite cumbersome for fraudsters to … Read more
Gifted money does not impact your CIBIL score in a direct way. But it can, and does, affect the score positively in the following scenarios: you invest the gifted money into a scheme and improve your financial situation, use the gift received in cash to retire a debt, or use the same to give the … Read more
When you fall ill, you are advised to see a doctor. Similarly, when your credit score is not in good health, it is recommended to see a credit counsellor. Credit counselling is likely to have a range of effects on your CIBIL score, based on your individual financial situation and how you make use of these … Read more
CIBIL score, or credit score, maintains credit information of individuals and businesses. Your CIBIL score is a three-digit numeric summary of your credit history. It, undoubtedly, plays an important role in the loan application process. It influences the interest rates, loan terms, processing time and negotiating power, among others. For instance, someone with a high … Read more
There is no set minimum credit score needed to secure a personal loan. Nevertheless, many lenders typically favour scores between 720 and 750. Such scores indicate responsible credit management and a higher likelihood of timely loan repayment. Even with a lower credit score, you might still qualify for a personal loan but expect a higher … Read more
Have you ever wondered what would happen if your credit score is different across credit bureaus such as CIBIL, Equifax and Experian? For instance, what if your CIBIL score is 760 whereas the one on Equifax is 740. Is this possible and if yes, why? Well, credit score ranges can certainly vary, albeit slightly, among … Read more