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  • Learn About factors That Affect Your CIBIL Score

    The first criterion that determines your eligibility for any kind of loan is your credit score. A credit score is a three digit numeric summary of your entire credit history which is prepared by CIBIL (Credit Information Bureau, India Limited) based on monthly information provided to CIBIL by banks and financial organizations. Normally, an individual’s credit score ranges between 300 to 900.

    When you apply for any loan and submit the filled loan application to a bank, the first thing your bank will check is your credit score and credit history. If you have a bad credit history and your credit score is low, your bank will directly reject your loan application. But, if you have a good credit score, your bank will immediately pass your loan application for further formalities. Given that your CIBIL/credit score is the first and major deciding factor to help you get your loan application processed, it is very important to understand the factors that affect your credit score and take steps accordingly to improve it if it is below expectation.

    Most of us think if we don’t pay our credit card bill on time, our credit score gets severely affected. But, it is not the only factor that affects your credit score. There are a number of factors that we need to pay attention to in order to maintain a good credit history and credit score.

    Mentioned below are number of factors that may affect your credit score:

    Multiple Loans & Credit Cards

    Having multiple secured and unsecured loans may affect your credit score. Likewise, having multiple credits cards may bring down your credit score. Because, they indicate the high debt you are already carrying. Usually, banks or financial organisations consider your debt to income (DTI) ratio before approving your loan application and if your debt to income ratio shows that you are already overburdened, they will not be willing to offer you further credit. They will consider you incapable of bearing the burden of your monthly EMIs. However, it’s not just owning multiple credit cards that adversely affect your credit score; closing your old credit cards may also affect your credit score. When you close a card, you reduce your overall available credit. Unless you reduce your spending, this will adversely affect your credit utilization rate, which is one of the most important factors used to calculate your credit score. Thus, if you have multiple loans, credits cards, both active and closed, and new accounts, this may affect your credit score.

    Delayed Payments

    Delayed payments and non-payments may negatively affect your credit history and bring down your credit score. Such activities indicate that either you are not serious about repaying your current debt or you are not capable of repaying them. As a result, your credit score will go down. Thus, your repayment history plays a major role in developing a good credit score. Therefore, make sure you pay all your debts on time. Also, monitor your single and joint accounts regularly to ensure that no payment is missed.

    Increased credit limit

    Requesting to increase your credit limit may also affect your credit score, indicating that you totally rely on credit cards and you are overburdened. It is advisable to avoid opting for a high limit on your credit card, unless you really need it. So, keep a check on your utilization of credit and try keeping your balances low. Opt for new credit only in moderation.

    No loans

    Having no loans and carrying many credit cards may affect your credit score. Many of us have many credit cards, but don’t have even a single loan account. This may negatively affect your CIBIL score. Having a balanced combination of both revolving credits like credit cards and non-revolving credits like a home loan may, helps you improve your credit score. It indicates your diversity in handling different types of credits.

    Not using your credit card

    Many of us are too suspicious about using credit cards. We think that credit card usage may lead to bad credit habits and unnecessary spending. So, we prefer not to use credit cards, even though we possess them. This kind of no transaction on credit cards will make your credit file inactive and may bring down your credit score.

    Not tracking your credit report

    Not checking your credit report may affect your credit score. Sometimes your credit report may contain faulty information due to wrong information or delayed reporting provided to CIBIL. This may bring down your credit score. So, it is always advisable to check yo0ur credit report/history for any errors at least at a gap of every 6 months. You can do so by purchasing your credit information reports online.

    Even though, the above mentioned factors may affect your credit score and bring it down, you can still maintain a good credit history by monitoring your credit report at intervals, paying bills on time, opting for moderate credits, maintaining a healthy combination of credits, and avoiding multiple loans, credit cards and new accounts. Maintaining a good credit history/score is important to avoid being rejected by banks.

    FAQs Regarding Factors That Affect Your CIBIL Score

    Is it possible for CIBIL to have incorrect information about a person?

    Yes, there have been cases reported where people have had their loan applications rejected despite having performed well with debt in the past. This is because banks and lenders sometimes erroneously give the wrong information to credit bureaus, who use the wrong information to generate credit scores. It is possible to have this information corrected by contacting the bank and the credit information bureau.

    Is it true that employers are looking at CIBIL scores these days?

    Yes, employers are considering the CIBIL score of a candidate as a measure of stability and reliability. Having a good CIBIL score these days not only helps you get a loan, but also a job.

    Is it true that my employer’s credit history will affect my eligibility for credit?

    If the company you work for has defaulted on loans and has dishonoured debt in the past, lenders will have blacklisted it. If you apply for a loan and mention that you’re working for a blacklisted company, lenders will reject your application on the basis that you don’t have a stable job. This is no fault of your own, but lenders will tend to look at applicants who pose the least risk in terms of dishonouring the loan. This is a rejection by association.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Credit Report Reviews

    • Experian Credit Report
      "Experian credit report"
      0.5 5.0/5 "Blown Away!"
      I checked my credit score in bankbazaar web site ,it has given score with in span of seconds. I wondered ,it is free of cost for checking. It is really a wonder. Congrats to bankbazaar team members . Thanks a lot once again to all bankbazaar team members
      Was this review helpful? 17
      ,
      Reviewed on Apr 05, 2019
    • Experian Credit Report
      "Realiable credit score"
      0.5 4.5/5 "Excellent!"
      I checked my credit score in bank bazar website. It gave instantly with all my banking past history. It was very much useful. It helped me know my credit status report at no cost . It only required few hassle free clicks and that over.Really appreciable!
      Was this review helpful? 31
      ,
      Reviewed on Mar 24, 2019
    • Experian Credit Report
      "Credit Score Tracking"
      0.5 4.5/5 "Excellent!"
      I am using bank bazaar features from last few years. Service provided by bankbazaar is good when compared to others in the market . Customer service is good and their response is good. One step solution for all you banking needs . A periodic tracking of your credit score is maintained well and kept updated in email as and when new scores arrive .
      Was this review helpful? 40
      ,
      Reviewed on Mar 08, 2019
    • Experian Credit Report
      "Very nice"
      0.5 5.0/5 "Blown Away!"
      Thanks I visited a number of sites on regards in the above matter, but what ever the response I got through bank bazar was marvellous and extra ordinary.... Thanq for providing such easy platform for getting in touch to obtain the debit cards so easily.
      Was this review helpful? 40
      ,
      Reviewed on Mar 02, 2019
    • Experian Credit Report
      "Good service"
      0.5 3.5/5 "Pretty good"
      I am using the services of bankbazaar from last 1 year. I checked my credit score using the mobile app which was user friendly and easy to use. Customer service was good and their response was on time. I found all the information at one place on the mobile app.
      Was this review helpful? 56
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have been using the services of bankbazaar from last 5 months. Customer service is fine with bankbazaar and their response was prompt. The website of bankbazaar was easy to use and was user friendly. It was easy to fill the details and check the credit score.
      Was this review helpful? 55
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good service"
      0.5 4.0/5 "Great!"
      I had received a mail communication from bankbazaar advising me to check the credit score. Though this was my first experience it was simply superb. As far as the level of service is concerned it was good also the response was on time.
      Was this review helpful? 50
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good service"
      0.5 4.0/5 "Great!"
      I was checking on google for personal loans and then i came to know about bankbazaar. The services provided by bankbazaar was good and their response was prompt. The website of bankbazaar is easy to use and also user friendly.
      Was this review helpful? 48
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good experience"
      0.5 4.5/5 "Excellent!"
      I was looking out for a personal loan and I ended up reaching this site for checking my credit score. The report was very much accurate and informative too. It hardly took 5 minutes for me to fetch the report. Coming to the website even that was very much user friendly.
      Was this review helpful? 48
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good experience"
      0.5 4.0/5 "Great!"
      Nothing new nor there was no specific reason for checking the credit score infact this is my first experience. It hardly took few minutes for me to fetch the credit report. The report was very much accurate and informative too. Even the response was equally good.
      Was this review helpful? 42
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good experience"
      0.5 4.0/5 "Great!"
      I did not encounter any issues at the time of fetching the credit report. I have checked my credit score previously too and I would certainly say it was a good experience. It hardly took 2 to 3 minutes for me to fetch the score. According to me the report was accurate,informative and perfect.
      Was this review helpful? 45
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Good experience"
      0.5 4.5/5 "Excellent!"
      To start off, it was a good experience at the time of fetching the credit score. This is the first time i have checked the credit score because i wanted to get the credit card. Report was accurate and was informative. It was easy to fill the details and get the report. In all it was a smooth process.
      Was this review helpful? 44
      ,
      Reviewed on Feb 26, 2019
    • Experian Credit Report
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I being a Customer of Bankbazaar for the past 1.5 years, thought of checking my credit score on this website. Their customer care executives were kind enough to explain to me about the features and benefits of credit score in detail. I would end up saying that it was a hassle free experience of fetching the credit score.
      Was this review helpful? 53
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      Basically, it was through advertisement I got to know about this website. This is my experience and it is the best too. The Customer service has always been a top notch here. Talking about the website it is very much user friendly and it is very easy to use as well.
      Was this review helpful? 49
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Good service"
      0.5 4.0/5 "Great!"
      I came to know about bankbazaar through mails and this was my first time experience. Customer service was good and their response was on time. I am using the mobile application of bankbazaar, it is user friendly and easy to use.
      Was this review helpful? 40
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Nice experience"
      0.5 4.0/5 "Great!"
      This review is all about my experience of fetching the credit score, though I dont have any reason for checking the credit score but it was useful for me. I was able to fetch the report successfully moreover I did not find any discrepancies with the report since it was accurate and perfect.
      Was this review helpful? 47
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Best experience"
      0.5 5.0/5 "Blown Away!"
      Hi all, I am a loan seeker and I wanted to check my credit score and that is why I checked my credit score here. I basically like the outlook and the website design. On top of all that, the report fetched was 100% accurate and it was flawless too..
      Was this review helpful? 51
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Good experience"
      0.5 5.0/5 "Blown Away!"
      The key factor which made to check my credit score was few months ago my credit score was down so i just wanted to check my credit score and I ended up checking my credit score here. Even the website was user friendly. The report was accurate and it was informative too.My experience was completely hassle free.
      Was this review helpful? 52
      ,
      Reviewed on Feb 24, 2019
    • Experian Credit Report
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      Well, I appreciate the efforts taken by Bank Bazaar in providing the credit score feature, in fact it is an excellent idea too. Basically, I got to know about Bank Bazaar through their promotional mails. Therefore I advise all my friends and colleagues to explore all the features and to reap the benefits offered by Bank Bazaar.
      Was this review helpful? 50
      ,
      Reviewed on Feb 22, 2019
    • Experian Credit Report
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I tried fetching my credit score one month back and that is how I started my interaction with Bank Bazaar. It all went well where I had applied for the credit check through internet followed by which, I had received a call from their executives who gave the next steps and finally my credit report was fetched effortlessly.
      Was this review helpful? 51
      ,
      Reviewed on Feb 22, 2019
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