CIBIL Score Calculation: Anyone can get a loan in an emergency. A bank has to consider many things before giving a loan. CIBIL score plays an important role in getting or not getting a loan. If someone’s CIBIL score is very poor, or does not meet the bank’s expectations, it can be very difficult to get a loan easily. Sometimes it happens that you have to mortgage something to get a loan, as well as the interest rate is high. This CIBIL score is not entirely clear to a section of the general public.
How to calculate CIBIL score?
A CIBIL score is a number that tells you how eligible or ineligible you are for a loan. The number of law indexes is calculated from 300 to 900. A CIBIL score of 750 or above is considered good. A good score will increase your chances of getting a loan. Now the question is, how to keep CIBIL score good? Let’s find out.
It is checked whether the payment was made correctly in the past, whether any payment was missed. If a payment was made late, how often and for how long was it delayed? The number of times the EMI could not be paid on time was also checked.
A thorough check is also done on whether there are any dues in the name of the person who has applied for the loan, how much credit or loan is left, and how much of it you have used.
See what kind of loan you have taken earlier or still have a loan in your name. The number of unsecured loans and the number of secured loans are checked. The more secured the loan in your name, the better your CIBIL score is likely to be.
It is also seen how many loan accounts were opened in the name of the applicant, whether any loan is still running, etc. Account opening and closing can be calculated. The credit utilisation ratio can be examined. All of these can play an important role in determining a person’s CIBIL score.