Understanding CIBIL Score
CIBIL score is a three-digit number from 300 to 900 representing creditworthiness. A score of 750+ is good and improves loan approval chances at favorable rates.
Factors Affecting Score
Payment history is 35% weight, credit utilization 25%, length of history, credit mix, and recent inquiries make up the rest.
How to Improve
Pay EMIs and bills on time, reduce credit utilization below 30%, avoid multiple applications, maintain healthy credit mix, and check reports for errors.
Common Mistakes
Missing one EMI can drop score by 50-100 points. Maxing cards, settling instead of full payment, and closing old accounts all hurt your score.
Timeline
Minor improvements reflect in 1-2 months. Recovery from missed payments takes 6-12 months. Settlement impact diminishes over 2-3 years.