Factors can impact/imporve your CIBIL score

CIBIL is a short form of CREDIT INFORMATION BUREAU (INDIA) LTD.Main purpose this organization is to monitor the people who use credit card and who is taking any kind of loans from bank.All banks and financial institution's are tied up with cibil,so all firms send the information to cibil.
       Each and every information about the loan like who is taking loan and how are they repaying bank to the bank,is there any delay everything will be sent it to cibil. Based the data provided they will be able to predict capacity of the person and how much loan they have it. Cibil will give the score to each person based on their past transactions.

When ever we apply any kind of loan  in bank like home loan,personal loan,vehicle loan etc, They will check cibil  score of the person. There are certain banks if the cibil score is below the range they will immediately reject the loan.  Cibil score is important factor for them to decide to give a loan or not.

Following factors can impact cibil score:
1. Late or delayed EMI payment, Even delaying of one EMI could impact your cibil score.
2. Bounced Cheque provided to any banking institution's. 
3. As per limit defined by the banks we can take loan of max 60 % from our salary.Loan amount exceed this limit cibil score will be impacted.
4. We might spend more amount in credit cards but due to insufficient money we may pay partial amount in the bill,if we continue to do that this in-turn impact in score
5. Do not take the frequently at-least 4 to 6 month gap should be there for each loan.
6. There could a case after taking loan we are not able to repay the amount due to financial reason. Later we will speak to bank and they will suggest for settlement. In such case impact a lot in cibil score.
Some times some firms missed to submit the details to the cibil, In this case cibil score might be wrong. This is our responsibility to get the updated cibil score from the bank. So when we request for the cibil score they have to submit the relevant information to cibil get the updated score.It can take upto 3 months to get the updated score.

How Cibil Score Calculated:
Cibil computed based on many factors,Each factor has some percentages   shown as below.
1. Repaying loan 30 %
2. Tenure of the loan 20 %
3. Ratio between your income and loan 25 %
4. Usage of credit card 25 %

Range of Cibil:
Generally cibil score will be in the range of 300 to 900. Following cases will be applicable based on the score.
1. If the score is above 800 they will consider as green channel and loan request will be proceed immediately.
2. Score is in between 700 to 800 , banks will verify all the document provided and then they will proceed further.
3. Score below 700 they will do lot of investigation before approving the loan. We have to show more security documents in order to proceed further
4. Below 600 they will reject directly. People who having cibil score below 600 extremely difficult to get a loan in any bank.

How to Improve cibil score:
1. Don't keep more credit cards
2.Don't apply loan in many banks at a same time
3. Pay all your EMI before date
4. While giving cheque payment make sure that money available in the account
5. Reduce taking personal loan.
6. Reduce giving supporting signature to relative/friends if he/she is not able to repay the loan properly.

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