CIBIL/Credit Score Explained: What It Is, Why It Matters and How I Improved Mine
For a long time, I thought a CIBIL score was just another number that banks checked before approving a loan. I did not pay much attention to it until I needed credit and realised that this three-digit number could affect my loan approval, interest rate, credit-card limit and even how seriously a bank treated my application. Many people hear terms like CIBIL score, credit score, credit report, credit utilisation and hard enquiry, but very few understand what they actually mean. Some people believe that having a high salary automatically gives them a good score. Others think that checking their own score will reduce it. I also believed a few of these things until I started reading my credit report carefully and understanding how the system works. This article explains CIBIL and credit scores in simple language, based on practical experience and the mistakes many ordinary borrowers make. What is a CIBIL score? A CIBIL score is a three-digit number that represents your credit...
