Credit Score

Many of my friends always come across with these set of lines
"always try to mantain your credit score." 
There are so many confusion  regarding credit score in Today's credit world because now-a-day's more than half of the commercial market is based on credit. Today's consumer is also prefer to buy the product on credit. The most popular source of credit maket is based on the acceptance of credit card. Credit card is nothing but a loan. In this credit senerio so many private financial companies come up with a good and attractive scheme to boost their credit facility. But it is not easy task to get a credit card easily. The issuing company first of all check the credit score of the applicant and make a decision to issue the credit card and approve the credit limit. In this regard the credit score plays an important role in this credit market senerio.
In this blog I am going to take a Barning topic "what is credit score?"  And "How is to  maintain the credit score?"
CIBIL is a Institute for maintaining the credit score .
The slogan of CIBIL is "Empowering you."
SO IF ANYONE IS PLANNING TO APPLY FOR A LOAN OR CREDIT CARD, CHECK HIS CREDIT SCORE FIRST!
Let's see what is credit Score?
A Credit Score is also known as a Credit Information report which provides the detailed credit history or we can say that It is a report of the credit worthiness. The CIBIL rates depending on the credit history between 300 to 900.
Now first question arise What is CIBIL?
CIBIL stands for Credit Information Bureau (India) Limited. It was estsblished in August 2000 and the first credit information company in India. The work of the company is to  collect the credit records of the individuals as well as commercial entities and maintain the records pertains to borrowing and payments related to loans and credit cards.
The associate partners including member banks and other credit institution helped CIBIL to obtain and maintain the information on  monthly basis. Based on these information CIBIL prepares a Credit Information Report (CIR) and credit score of an individual.
This report is available on the request of the credit institutions, which help to evaluate and approve loan/credit applications.
No doubt CIBIL plays a major role in India’s financial system by helping banks and credit institutions and also help to manage better their business by providing customers credit secure on fair terms.
CIBIL is licensed by the RBI and governed by the Credit Information Companies Regulation Act, 2005.
To get more details please click to link below.
https://www.cibil.com/about-us
Let us see what is a Credit or CIBIL Score?
A credit score is a three digit numeric summary of entire credit history of any individual or commercial entity. It is prepared based on the information provided in the Credit Information Report. The credit score normally ranges between 300 to 900.
CIBIL score is important and plays a major role for loan application in their approval processes. Means in the absence of  a satisfactory CIBI score, no body may not be eligible for good loans.
After receiving the loan application request, the bank or financial institutions will first check the applicant's credit score and credit report. If the applicant have a bad credit history and low credit score, the bank or financial institutions may straightaway reject the loan application. Only if the credit score is good the bank will consider the loan application and pass it to for approval.
CIBIL score or credit score is the deciding factor for many banks and financial institutions when they come to considering any loan application. If the score is higher it is a chance that the loan application will be reviewed and approved. However, the decision to approve the loan application is completely dependent on the bank and the CIBIL as an institution does not play any role in approval or reject the loan application.
Now a question come into my mind that how an individual check his CIBIL score?
Any body can check their CIBIL score online by an online score request form is available at CIBIL’s official website. It is very easy and convenient. The request process is completed Immediately and CIBIL is changing a nominal fee for this act.
Process to get the online credit score
First thing need to do is to fill the online application form by entering the personal details like name, date of birth, address, phone number, income, identity proof, and address proof.
After filling all the details click submit, it will be directed to a page where payment option will appear and system will ask to make payment. The fee is Rs. 470 and payment can be made either by credit card, debit card or through net banking.
After the payment is done few authentication details have to be submit. Once, authentication is successfully completed, the CIBIL report will come through registered e-mail within 24 hours.
Online Checking the credit score is very quick and simple. It is good to an individual to Check his credit rating time to time, and if it is low, try to improve it.
There is also an option to get a printed copy of the credit score. First of all a printed application has to send to CIBIL, along with the CIBIL  ID,
A copy of  Identity proof
A copy of address proof.
After receiving these documents, CIBIL verify the documents and will send a printed copy of the credit report to the address mentioned in the address proof.
Here it is advisable that always obtain the credit report and score personally by the applicant rather than through a bank/financial institution because enquiries from banks and other financial institution will give negative affect on the score.
Now one more question I want to discuss here what are the factors can affect the CIBIL score?
According to me below mention factors may affect anybody's CIBIL score.
Payment history: The payment history plays a major role in developing a good CIBIL record. Making late payments on credit cards or delaying/defaulting of the EMIs regularly can negatively affect for credit score because it indicates that the applicant is not serious about or capable of meet or clear the existing debts.
Increased credit limit: Increasing the current balance of the credit card may negative affect on the  credit score since it is considered to enhance the repayment burden. However, increased spending on the credit card does not affect your credit score as long as the credit utilisation is in proportion to the approved credit limit.
Unsecured loans: A high percentage of unsecured loans such as personal loans and credit cards may affect on the credit score. A balanced combination of secured and unsecured loans adds positively to the credit score.
If any individual have multiple loans, credits cards and new accounts, this may affect on credit score, and banks or financial institutions may review the loan application very carefully.
Let us look further how to improve the CIBIL score?
Improve or maintain the credit score is not really hard, but it does require systematic planning and execution. Some of the best ways to improve the credit score are mentioned below.
To know what is the current position & where any imdividual stand – 
The first step towards building the score is to know where we stand. Having an idea about the current position which helps to reach the target or preparing for the target. It is also helpful to identify whether it is factual or any errors, if found any error immediate correction could help in a quick increase in score.
Never delay in repayments –
Defaring is one of the harsh truth of the current financial market and most of the people looking to prey to the situation. Delaying the bill payments whether it pertains to credit card or loan EMI could dipping the credit score. On the other hand making of timely payments always maintaining a decent score. Here I want to add that a bank or a financial institutions may ignore the first delayed payment, but repeated delays could bring unwanted attention.
Mix credit –
As variety adds colours in the life, like this variety in terms of credit can also help to improve in credit score. Here I want to clarify that what is the meaning of mix credit?
The mix credit is a combination of secured and unsecured loans. This act  can reflect favourably on the score because many of the lending institutes may prefer to deal with an applicant with a varied portfolio.
Don’t enjoy the maximum credit limit – In this practical warld everybody wants to enjoy things at the maximum, like this there is a great possibility to use the maximum credit also. Staying within the limit is bound to build a good score, because it shows to the lending agencies that the applicant is a responsible individual who knows his/her limit.
Limit of cards and loans – 
Today mostly in India most of the people carry a plenty of credit cards in their  wallets. They think that this is a status symbol but they do not know that they  have more cards than they need. Owning too many credit cards can have its own drawbacks. Not only it complicate  repayment, but also pushes them to spend more than they can. It increases debt in their life.
Actually credit cards and other similar tools were designed to be an added benefit in one's lives, but misusing of any provision can throw under the darkness of debt.
If we Keep in mind these few simple point  could ensure that any body stay on the right financial track.
CIBIL reports reflect only data that has been received by them from your creditors. If they have not been updated about your recent activity, it won’t show on your report.
I hope that my this blog would help to improve and maintain the financial activity and also help to keep in track for my reader's.
If any of my reader have any related query or suggestions kindly give their comments.
Thanks for support.