CIBIL is a profitable invention as it has undoubtedly eased and contended the load and the word of credit in the best way possible. It is also known as credit score and is a numeric representation of your repayment history.
During any credit activity, such as loans or credit cards, the lenders ensure to check your CIBIL score and credit history.
This way, your application processes further. However, before you apply for a business loan, it is vital to know a good CIBIL Score to avail loan.
Good CIBIL score for Business Loans
CIBIL Score is a way to measure your credibility when it comes to repaying your debts like credit card and loan payments. It invests in maintaining the credit information of all previous and current financial records.
The range of CIBIL score stays between the numbers 300 to 900. Any score that is near to 900 is considered better and considerable. You can enhance it if you know how to improve the CIBIL Score.
How to Get your CIBIL Score Online for Free?
If you want to check your CIBIL score online for free, you need to visit the official website of the lender or credit firm and request for the credit report.
To get the report, you have to provide the required documents. For instance, the document process with ZipLoan is quite minimal, so you don’t have to worry about any complexity. After the verification of your document, you will acquire the CIR through an email.
To know your CIBIL score for a loan, make sure to follow the below-mentioned steps:
- Visit CIBIL’s main website & click on the link for a free credit report.
- Make your CIBIL account.
- Fill in the form with these details: (Date of birth, Gender, Postal Address, Identity Proof Number (PAN, Aadhaar, etc.)
- Make sure to accept the terms and conditions
- Right after this, CIBIL will show your Credit Information Report (CIR).
As you can acquire your completely free credit report only once in a year, you’ll need to pay to know your CIBIL report again in the same year. You need to be assured to do this process as per your requirements.
Significance of CIBIL Credit Report
- Every lender and NBFC check credit reports of the loan applicants before they approve the applications. Your credit score and report shows your financial stability, which assists the lenders to analyse whether or not you can repay the amount on time. This report is created based on credit information that gathers at a regular interval.
- If you pay your credit card bills and loan amount timely, your CIBIL score will increase steadily, thus turning you into a trustworthy borrower. Try to get a high CIBIL score for a business loan or score close to 900, and you will have a better chance to employ a loan at a considerate or lesser interest rate.
- A low CIBIL score would bring more chances of your loan application getting rejected by the lenders. It is advisable to check your CIBIL score regularly so that you can improve it in case it is low.
Why a CIBIL Score matters for availing Loans?
- As you know it by now that your creditworthiness is judged based on your CIBIL score, it undoubtedly holds importance. CIBIL score helps the lender to decide whether to accept your application as a potential borrower or not. Being a summation of your credit history and how carefully you have dealt with credit in this past, CIBIL scores matter when you’re applying for a loan.
- Your CIBIL score directly reflects your credibility. It also takes a lot of things into considerations, such as on-time payments of EMIs, credit usage, credit inquiries, and your current debt. A perfect CIBIL score displays the lender or NBFCs that you’re financially ready and repost to handle credit.
- Though, keep in mind that a CIBIL score is not the only thing that matters when it comes to qualifying for any loan and approving of your application. Many other factors also play significant parts in it.
Quick Ways to Enhance your CIBIL Score
#1. The repayment of your outstanding debt can bring a notable effect on your CIBIL score. It makes the need to maintain a strict plan of paying EMIs on time highly crucial as delays in repayment not only put a penalty on you but also decrease your CIBIL score.
So, if you have realised the need to pay EMIs on time, then set reminders for these payments and tackle them without missing the set date.
#2. Some people believe that credit card accounts should be deactivated if no more in use. It is due to the oblivious about the influence an old credit card has on a person’s CIBIL report.
Practically, a good credit card account over a long period that has been organised well with on-time payments is a true blessing.
It provides the much-required momentum to improve your CIBIL score. So, the longer you have a positive credit card repayment record, the better your CIBIL rating scores are.
#3. The number of loans you take in a specific time should be less. Make sure to repay one loan and then go for another to avoid your credit score from crashing.
If you apply for numerous loans at a time, it will display that you are in a loop of insufficient funds. It will negatively impact your credit score. So, avoid taking too much debt and repay your loan successfully to boost your score.
#4. The most effective yet not so popular way to improve your CIBIL score for a loan is to inspect your CIBIL report for errors and rectify them on time.
In many cases, CIBIL may make errors when it comes to updating your credit record, and note wrong information against your report It will surely bring down your score. Make sure that you check your CIBIL report regularly.
It will assist you in identifying the mistakes and correct them immediately. As a result, your CIBIL score will improve significantly.
Make sure to visit the website of ZipLoan to know the accurate creditworthiness for a business loan and get unsecured loans as per your requirements.