Whenever you need money and go to the bank to take a loan, first of all, your CIBIL score is checked there. CIBIL score is also called credit score, it is a kind of your financial report card. Let us tell you that the CIBIL score is a three-digit number between 300 to 900, but only a score of 750 or above is considered good.

It is in your hands to spoil or improve the CIBIL score. You can increase it by doing transactions in a better way. But for this, first of all, you need to know how the CIBIL score is calculated. It is calculated based on 4 points.

Payment history will be checked -

Your payment history plays the biggest role in the calculation of your CIBIL score, it is seen in it how many payments you have paid on time, if you have paid any installment, then how many times and how many times you have delayed it. Along with this, they also see how many times you have bounced the installment (EMI bounced). For your information, let us tell you that all these things have an impact of about 30 percent on the CIBIL score calculation.

Credit Exposure -

Now comes the matter of credit exposure. In this, it is seen how much your total outstanding, how much credit or loan (Loan News) is in your name and how much of it have you used. Its share in the calculation of CIBIL score is 25 percent.

Unsecured loans and secured loans will be counted -

Apart from this, while calculating the CIBIL score, it is also seen what kind of loan you have. In this, it is also checked how many unsecured loans are there and how many secured loans are there. The more secured loans you have, the better your CIBIL score is. Along with this, it is also seen what is the duration of those loans. All these things have a 25 percent impact on the calculation of CIBIL score. If anything is found wrong in this. Then your CIBIL score can come down.

Information given by the CIBIL score company -

In this calculation, other activities related to your loan are seen in the remaining 20 percent. In this, it is checked how many loans you have taken recently i.e. how many loan accounts have been opened and closed in your name. Apart from this, your credit utilization ratio is also seen. For information, let us tell you that your credit utilization ratio should not be more than 30 to 40 percent. The CIBIL score company has given detailed information about all these factors on its website.

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