A bank or a financial institution makes sure that the individual to whom they will be lending the loan is worthy of repaying it as well. If they find out that an individual has a poor credit rating or score, he or she won’t be given any loans. No one takes risks these days. You should know which credit score do banks use in India before availing a loan. Three primary credit score is offered by three different credit bureaus of the Reserve Bank of India and they are- Experian, Equifax and CIBIL. Out of these three, one is predominantly used. So the answer to which credit score is used by banks in India will be the CIBIL score. What is a CIBIL score?A CIBIL score is a three-digit number ranging from 300 to 900. The higher the number, the better.
If a person has no credit history, his or her score will be - 1.
If the credit history is for 6 months only, the CIBIL score will be 0
It takes 18 to 36 months to build a credit history.How to improve the credit score?After knowing what credit score banks use, you should also know how to improve it. Here are some ways of improving it-Make all the bill or due payments within the stipulated time
It is better to use a maximum of 50% of the available credit limit
Check credit reports for errors and report them if found
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Which Credit Score do Banks Use in India?
Anubhav
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May 25, 2023
2023-05-25T09:41:19+00:00 2023-05-25T10:21:20+00:00Comment
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Banking
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