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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

    1. 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.

    2. 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.

    3. 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.

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    Credit Report Reviews

    • Experian Credit Report
      "nice"
      0.5 5.0/5 "Blown Away!"
      Good place to take personal loans and credit cards, fastrack applicationds but simply rejecting applications what the purpose my crdit score is 816 i did not got at least single prpproved they are continl distrub us for uploading but no use
      Was this review helpful? 67
      ,
      Reviewed on Aug 21, 2019
    • Experian
      Experian Credit Report
      "Good place to take personal loans and credit card"
      0.5 2.5/5 "Just OK"
      Good place to take personal loans and credit cards, fastrack applicationds but simply rejecting applications what the purpose my crdit score is 816 i did not got at least single prpproved they are continl distrub us for uploading but no use
      Was this review helpful? 65
      ,
      Reviewed on Aug 14, 2019
    • Experian Credit Report
      "CT"
      0.5 5.0/5 "Blown Away!"
      I am using KOTAK MAHINDRA bank urban credit card for more than 4 years. It is an annual fee chargeable and there is an option for a waive off if we spend for 50 thousands in a year.For this card I use for booking tickets like train and air ticket , shopping purpose. So based on the usage I have not get reward points and cash back yet.
      Was this review helpful? 104
      ,
      Reviewed on Jul 11, 2019
    • Experian Credit Report
      "Test Review For CT"
      0.5 4.5/5 "Excellent!"
      OEJHPNETVIWEVVHZFYBHEFWQZAUGPYNLVKXOHPEMZTXMAFHKVUFHMPSEKUFQRIWHKEUVYPFMHCKHQGOSJXJXQPVGYOJRCCKRRSNWLGVLRJBSRLIJLJVZTOWCGGFLBBXJWDUDWATLCKBNABXLPGDZGSTTIXIUVWUTPZQBMWFMPUQPQRGZQGLBDJHYEGQHACNJEJKHQNRGQBGEKYPQQC
      Was this review helpful? 113
      ,
      Reviewed on Jul 04, 2019
    • Experian Credit Report
      "Need to provide reward points and cash back"
      0.5 5.0/5 "Blown Away!"
      I am using KOTAK MAHINDRA bank urban credit card for more than 4 years. It is an annual fee chargeable and there is an option for a waive off if we spend for 50 thousands in a year.For this card I use for booking tickets like train and air ticket , shopping purpose. So based on the usage I have not get reward points and cash back yet.
      Was this review helpful? 126
      ,
      Reviewed on Jun 26, 2019
    • Experian Credit Report
      "Good card"
      0.5 5.0/5 "Blown Away!"
      In Axis bank, i don't get any offers. 2 years ago, i have started using the card and my credit limit very good which is Rs. 90000 after the usage, they have reduced upto Rs. 42000 and every six month they are enhancing the limit. They are not sending the offers hence i'm planning to close the card by next month since lots of cards are not required.
      Was this review helpful? 118
      ,
      Reviewed on Jun 24, 2019
    • Experian Credit Report
      "SBI bank Credit card"
      0.5 4.5/5 "Excellent!"
      I came SBI card through bank bazar online, I want a best credit cards for me , in bank bazar website I found a SBI card based on my credit score & this card are give me best rewards points , I'm using this card from 2 year & I give best thankful to bank bazar because his customers service is superb.
      Was this review helpful? 136
      ,
      Reviewed on Jun 11, 2019
    • Experian Credit Report
      "CREDIT REPAIR "
      0.5 5.0/5 "Blown Away!"
      I need to share my experience how I evicted all collection on my report. I paid off my hospital bills from the collection agency that the hospital sent me to and the collection refuse to remove from credit. I am trying to get a house. I have called the collection agency and they didn't remove it, so what do i do. It paid off and i want this collection remove. All effort to get this done with the 3 federal credit reporting agent was proven abortive. I did some research and found this credit repairer Global Technologies. I sent a mail to his G mail (globaltechnologies46 at G mail com) how he could get me out of these mess!! He replied and explain in details how he will evict all collection on my report. He did a wonderful job for me.
      Was this review helpful? 144
      ,
      Reviewed on May 10, 2019
    • Experian Credit Report
      "Credit Report"
      0.5 4.5/5 "Excellent!"
      Credit Report is providing a ease way to understand my cibil score and it is providing me an opportunity to apply for n number of banks. It is super good and i find it very cool and comfortable. Having perfect design, user friendly and accurate with more information..
      Was this review helpful? 172
      ,
      Reviewed on May 08, 2019
    • Experian Credit Report
      "Review of Credit Report"
      0.5 5.0/5 "Blown Away!"
      The credit report gives an excellent indication of my credit situation. The reports are updated with a lag. So, the exact credit situation is only reflected after a couple of months. Nevertheless, experience is good. The graphical representations are also good.
      Was this review helpful? 168
      ,
      Reviewed on May 04, 2019
    • Experian Credit Report
      "Ease of use, quick access and detailed report"
      0.5 3.5/5 "Pretty good"
      Recently I was about to apply for a loan and found bankbazaar through a search engine. Wanted to check my eligibility and credit score before i wanted to proceed further, Bankbazaar made it easy as they have all solutions in one platform. Im extremely satisfied with the services.
      Was this review helpful? 173
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      "Credit Report"
      0.5 5.0/5 "Blown Away!"
      Awesome Service on credit report which is updated all the time. Very accurate and perfect. I could check and apply for various financial products. Keep it Up Bank Bazaar Team........................................................
      Was this review helpful? 163
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      "Credit Report"
      0.5 4.5/5 "Excellent!"
      It was a great experience to fetch credit report through you guys . now i receive my monthly report which helps me track my credit status. This report helped me to apply for different financial products through bank bazaar. I happy with you guys.
      Was this review helpful? 154
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      " My credit card is not show my security is very good"
      0.5 5.0/5 "Blown Away!"
      Credit card is not show my credit card is very good please help my credit card I have interest credit card please give me credit card I have happy it card miss you me please credit card me I have not credit card please give me credit card thanks give me card
      Was this review helpful? 153
      ,
      Reviewed on Apr 29, 2019
    • Experian Credit Report
      "credit report"
      0.5 5.0/5 "Blown Away!"
      It was a great experience to fetch credit report through you guys . now i receive my monthly report which helps me track my credit status. This report helped me to apply for different financial products through bank bazaar. I happy with you guys.
      Was this review helpful? 161
      ,
      Reviewed on Apr 25, 2019
    • Experian Credit Report
      "Excellent Service by Bank Bazaar"
      0.5 5.0/5 "Blown Away!"
      I could find bank bazaar to be very convenient in checking my credit score for applying any loan or an application for credit cards. Also after keying all the details the bank bazaar people wont disturb. Whenever there is an offer you will get a text regarding the information. Thanks for getting my accurate Credit score
      Was this review helpful? 161
      ,
      Reviewed on Apr 23, 2019
    • 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? 185
      ,
      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? 193
      ,
      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? 207
      ,
      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? 198
      ,
      Reviewed on Mar 02, 2019
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