If you do not repay the loan on time, that is, if you default on the loan, your CIBIL score gets affected. Like a child appears for an exam and does not get good marks due to not giving the paper properly. Later, due to the same low marks, the child does not get admission to a good college.

The same happens when you take a loan and default. If you do not repay the loan, you get the bad name of default, which spoils your CIBIL score. Next time, if you go to any bank to take a loan, either you will not get the loan or if you get it, then it will be with a lot of hassle and at a higher interest rate. Now the question is, does the CIBIL score get spoiled for life? Is there no scope for patching it up or improving it? If this were so, then people would probably never default on their loans. There would be some scope so that the way ahead opens up and some loans can be obtained.

Understand it with this example.
Understand the concept of credit score with a simple example. Suppose you took a loan from the bank to build a house. Initially, you kept paying the loan EMI but suddenly you lost your job or your business went bankrupt. In this situation, you had no choice but to stop paying the EMI. As soon as the EMI was stopped, the bank put you in the default category. Later, the financial condition improved and you paid the remaining installment amount and the interest on it to the bank. This would make you think that the CIBIL score that might have been affected would be compensated.

You had good hopes, but experts say that despite doing everything, the CIBIL score remains bad for at least 2 years. Pay the pending installment (LOAN EMI) or even pay its interest, the CIBIL score does not improve for two years and its loss is seen in many financial needs.

The CIBIL score cannot be hidden.
The wind of credit score is such that its wave reaches every corner. That is, the negative ranking of your CIBIL score reaches every bank and finance agency. Whenever you go to a bank to take a loan or to a finance company to take a car loan, they will immediately find out about your negative score. In such a situation, you will either not get a loan. Even if you get a loan after a long hassle, its interest rate will be charged in an increased manner. Then you will get to know the importance of CIBIL score very well.

How CIBIL score improves
Positivity comes in CIBIL score by looking at your transactions and payment of credit card or small and big bills. Do not delay in payment of bills, pay the entire bill on time. For example, pay the entire credit card bill, not the minimum due amount. This improves the CIBIL score. Many times people do not take NOC from the bank after taking a loan and repaying it on time, due to which the CIBIL score goes negative.

NOC should be taken from the bank immediately, only after which your data is updated on CIBIL. The same is the case with credit cards. If you close your credit card, complete all the paperwork from the bank. Do take a certificate of closing the credit card from the bank. All these things improve your CIBIL score.

Does checking CIBIL score deteriorate if checked repeatedly?
Many people ask that if we check the CIBIL score repeatedly, will it go down? Our answer to this is yes and no. Let us tell you why it is so.

CIBIL score is a report of the customer's history, which tells the bank when the loan has been taken and when the loan has been inquired about. If you are checking your CIBIL score yourself, then it will not affect your CIBIL. Apart from this, if you apply for a loan, then the loan-giving company will check your CIBIL score. When the company checks, there are chances of your CIBIL score going down.

What should be the CIBIL score to get a loan?
Therefore, do not make too many inquiries for a loan. You can check your CIBIL score as many times as you want, there is no problem with that. The range of CIBIL scores is between 300 to 900.

Very good: 800-850
Very good: 799-740
Good: 739-670
Okay: 699-580
Very bad: 579-300

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