CIBIL Score: How is your CIBIL score decided, know in which situation the bank does not give loan..
You must have often heard that one of the most important things while taking a loan is to have a good credit score. Before taking a new loan, if you have already taken any other loan, then your credit history depends on the CIBIL score. The better this score, the higher the chances of getting a loan. At the same time, it is a good medium to test the credibility of the borrower whether the borrower will be able to repay the installment of the loan taken or not.
However, there is still a lot of confusion in the minds of people about the CIBIL score and there are many such things that people have believed to be true. So let us know what are the things related to the CIBIL score (news related to the cibil score) that are not true, but people consider to be true.
You will not get a loan if you have such a low CIBIL score
Often people believe that if the credit score is low, the bank or the loan-giving institution refuses to give it, that is, if the score is low, you will not get a loan. But this is not completely true. Many banks give loans to borrowers with low CIBIL scores. However, they charge a higher interest rate for this. At the same time, some banks give loans only to those with good scores. Therefore, instead of worrying about low CIBIL scores, one should look for banks that give loans even with low scores.
The score can deteriorate if the check bounces
There can be many reasons for check bouncing. Sometimes checks bounce due to a person's mistake, and many times cases of checks bouncing due to a bank's mistake or technical reasons also come to the fore. Cibil Score has nothing to do with this and neither does it affect your score. CIBIL score deteriorates more due to not paying EMI or missing out on paying the loan installment.
Less use of credit cards means good credit score
If you think that despite having a credit card, it should not be used, then let us tell you that it has nothing to do with CIBIL score. On the contrary, if no amount has been withdrawn from the credit card, there will be no credit history. This can make it difficult for the bank to understand whether you are a good creditor or not and on this basis, the loan application can be rejected.
CIBIL saves the name of defaulters (CIBIL Defaulters)
CIBIL is a type of document, which contains all the details related to your transactions. So if you are thinking that if you do not pay any loan installment, your name will be on the list of defaulters, then it is not so. All the data is collected in it. Even if a person pays the installments regularly, his name will be with CIBIL.
Checking CIBIL repeatedly spoils the score (news related to cibil score)
Many people feel that checking the CIBIL score repeatedly (How to check CIBIL score) can spoil the score, but the CIBIL report does not reflect the CIBIL inquiry made by the applicant. Hence it is not possible to know how many times a person has requested for CIBIL report.
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