CIBIL, now known as TransUnion CIBIL (Credit Information Bureau (India) Limited) is a credit rating company that collates, manages and generates credit scores for the customers worldwide.
A credit score is a 3-digit numerical representation that signifies the creditworthiness and repayment capability of an individual.
Generally, a credit score ranges between 300-900, wherein any score close to 900 is considered good by financial institutions and NBFCs (Non-Banking Financial Companies).
CIBIL Score Increase Tips
Any type of repayment related to loan or credit card EMIs should not get delayed, as it directly impacts your CIBIL score negatively.
One can check his/her credit report for inaccuracies or misinformation shown in the credit report. This practice helps in the improvement of your CIBIL score.
Person availing credit should maintain his/her credit utilization ratio below 30% of the total available credit limit.
One should always opt for mix of credit as due to which the risk factor balances in return providing better credit score.
Do not apply for multiple credits simultaneously, as this displays your credit hungry behaviour to the lenders.
Avoid using your credit limit to the maximum, as due to this your credit utilization ratio increases which in turn lowers your CIBIL score.