An individual’s credit score is calculated by Credit Information Bureau (India) Limited (CIBIL), based on adavanced analytics of a borrower’s credit history. A credit or CIBIL score is a number between 300 and 900 which follows the rule of the higher the better. The closer you are to 900, the more it is likely that the lender will be confident with your application and approve your loan. It has been well known that a Credit Score of 750 and above are considered good enough for all loan applications across all credit institutions.
The most important components that compose a CIBIL score revolve around the loan payment behaviour of an individual. Some of the important factors are:
Credit History
Owning a massive 30% share in calculating your credit history, is your credit history. The credit bureaus collects information on your personal and credit details from the banks and financial institutions. This information consists of a month-on-month record of the latest 3 years of your payments towards your bills and EMIs, whether it has been settled, written off and the total outstanding amount.
Credit Utilization
Your current outstanding loan obligations divided by your credit limit form your credit utilization. Credit bureaus do not appreciate a higher credit utilization ratio because it represents your rising loan burden. Credit Utilization has a weightage of 25% in calculating your credit score.
Credit Mix
How your loan portfolio is composed also makes a difference, that is, in what ratio do you owe secured and unsecured loans. While unsecured loans put negative weight in your application, secured loans have a positive impact if the repayments have been regular. Credit MIx has a weightage of 25% in calculating your credit score.
Other Factors
Factors such as the number of credit applications account for the remaining 20%. A higher number of credit applications gives a negative impression in your CIBIL report.

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Abhavya is 2+ years experienced in writing for banking and finance related topics.
Please check the link for more information on CIBIL
https://www.myloancare.in/cibil/