A Comprehensive Guide to Transunion CIBIL Scores

TransUnion CIBIl score is one of the approved and highly trusted sources of credit ratings for individuals and organizations that work on AI-enabled algorithms and collates credit reports. 

It is one of the most transparent sources of understanding a person’s creditworthiness and credibility and checking whether they are eligible for an unsecured loan or a low-interest rate.

Several financial institutions depend on the CIBIL score to assess individuals’ financial reputation before approving an applied loan or credit card. This score is proof of how an individual manages his debt and how good he is with the repayment of loans. The good news is that several online applications help you with free access to CIBIL reports each month, wherein you can get a ready report on your debt situation.

What Is the Importance of the Cibil TransUnion Score?

CIBIL TransUnion score is your credit rating that normally varies between 300-900. If you have a score of 700 plus, you are eligible for loans, credit cards, and lower rates of interest.

According to a popular survey by Global TransUnion, 50% of the credit demand of Indians remained unserved in 2021, while 160 million people in the country were considered underserved for credit. This is mainly due to the non-availability, poor awareness, or lack of access to CIBIL score reports.

If you have the right access to get your CIBIL score, you can keep a constant check on it, make efforts to improve the report and check for errors and omissions. If you see that the score is low, you can repay your outstanding debts on time, apply for different types of loans to maintain the credit mix, maintain a low credit balance, and keep the credit utilisation ratio low.

Read More – Why Should You Hire A Retirement Planning Consultant

What Are the Factors That Influence Your TransUnion CIBIL Score?

Given below are the major factors that have an impact on your TransUnion CIBIL score.

Repayment History

Your CIBIL score considers every monthly payment you have made towards your debt for the past three years. Credit history influences your CIBIL rating by 30%. Any single delay or missed payment can impact your CIBIL score negatively.

Credit Utilisation Ratio (CUR)

If you keep making requests for credit limit increases, it can have a poor impression on your credit rating. This is because it reflects how you depend on credit which has a 25% impact on your rating.

Credit Mix

The more unsecured loans you have in your portfolio, the more downward would be the CIBIL score trend. On the other hand, taking secured loans gives a positive trend to your credibility. Your credit mix impacts your CIBIL score by 25%

Number of Applications Processed and Rejected

If you have applied for several credit cards or loans and faced rejections on a few of them, it has a poor impact on your credit rating. This has a 20% impact on your CIBIL report.

How to Check the TransUnion CIBIL Score for Free?

You can follow the below-mentioned steps to get your CIBIL score for free.

Step 1: You can download the OneScore app or visit the official website of TransUnion CIBIL

Step 2: You can click on the ‘Get Free CIBIL Score’ button and fill in the application with your details and PAN details Step 3: You will be able to see a report on your TransUnion CIBIL score

Conclusion

The CIBIL report serves as an eye-opener into your financial health for individuals, business organizations, and industries. Creditors and financial institutions gauge your capacity to repay monthly EMIs and check your creditworthiness using the CIBIL report. 

If you have a source that helps you with a free CIBIL report each month, you will have better insights into financial health and be better positioned to make wise commercial decisions. 

The best feature about getting access to your CIBIL report is that if you see discrepancies, you can immediately get it checked. Also, if you see a lower score, you can take precautions and make the required effort to increase your score.