Your CIBIL credit score is an indication of your financial stability and helps lenders decide if you are an individual worth taking a credit risk on. Basically, a credit score tells the lender what's the probability of you paying back the loan that you have sought.
Your CIBIL credit score is calculated on your history of credit usage and the way you have handled past payments. If you have been regularly paying off your equated monthly instalments (EMIs) and haven't defaulted you will have a higher score. If you use credit in moderation, and don't go about borrowing beyond your means, you will have a higher score, which in turn improves your credit rating.
Scores between 700 and 800 used to be considered good, but now lenders are enforcing stricter norms. If you have a score below 650, it is most likely that your loan applications will be rejected or you will have to pay very high rates of interest. If you have a score below 600, you won't get a loan.
The lower your CIBIL credit score, the higher the probability of a default. You should access your score at least once a year so that you get an indication of your credit rating. If you are planning to take a big loan (for example, a home loan) in the next 24 months, then it is advisable that you check your score every six months so that you can improve it and increase your chances of getting a loan.
You can apply your CIBIL Credit Score through Apna Loan Bazaar with the following. Apply CIBIL Score here.
Note: Courtesy from CreditVidya.com