CIBIL Score is an individual credit payment history across various loans from financial credit institutions over a period of time. If you have a good CIBIL Score, you would get loans at lower interest rate. If you have bad credit history, this can screw up your CIBIL Score and you may end up paying higher interest rates on loan or in some cases your application also gets rejected. There are many individuals who want to improve their credit score, however, do not know what exactly they need to do. Here comes CIBIL score simulator. This simulator helps you to check how your score would improve by taking various actions. In this article we would provide how CIBIL Score simulator helps you to improve CIBIL Score.
What is CIBIL Score?
When you take a credit card or loan, this is recorded as part of your credit history. However, there are hundreds of banks or financial institutions who are either providing loans or credit cards etc. There needs to be one centralized source to assess the individual credit history. Here comes CIBIL. It provides credit report also called as Credit Information Report (CIR). CIBIL Score is the 3 digit numeric which indicates the credit history. This 3 digit score is derived based on the credit information available in CIBIL database. This CIR has detailed information on different type of credits availed such as home loan, car loan, credit cards, personal loan, overdraft facilities etc.,
CIBIL Score ranges between numeric number of 300 to 900 and is calculated based on the past credit history provided by various lenders.
What does CIBIL report contain?
Before going to the CIBIL score simulator, one need to understand what does CIBIL Score contains.
Personal Data: This section contains full name, date of birth, PAN number, passport etc. of the individuals.
Contact info: This section contains the address (office and home address whatever recorded), email addresses, mobile/work/home contact nos etc.,
Employment Info: Based on the salary slips provided by you, this section would get updated on time to time basis. It would reflect latest employment info i.e. employer name, employer address etc.
Account Information: This section provides various credit limits, sanctioned loan with amounts, when it is opened, when it is closed, any amount written off by a financial institution or bank etc.,
Enquiry information: When you apply for a loan or credit card, bank or lender would access your CIBIL information. This data is recorded here.
How CIBIL Score simulator helps to improve your CIBIL Score?
Now that you understand what Cibil score report contain, you might be wondering how to improve this score considering all these details. It is simple to say that pay credit card dues and home loans on time and don’t default any payments etc. However, you might not know how such scores would move if you take action. Here comes CIBIL score Simulator.
This simulator would help you to simulate different credit actions in your CIBIL Report. This would not do anything outside your report. This simulator helps to know how your CIBIL score improves if you can take some decisions based on your credit report.
How CIBIL Score simulator works?
This simulator has 3 components:
1) Opening or closing the loan accounts or credit cards
2) Paying off outstanding amounts on your credit card bills
3) Adding late payments to your active loan accounts.
Let me explain with an example. Assume you want to add a new credit card. You can use the simulator and enter the credit limit which you wish to have for the new card. Based on this, CIBIL simulator would recompute your score and provide you with a new score. You can play with a credit limit and other simulator parameters to check how you can increase your CIBIL Score.
How can I get access to Credit simulator?
You need to purchase an active paid subscription with CIBIL for 1 month or 6 months or 1 year in order to get access to the CIBIL Score simulator.
FAQs on CIBIL Score Simulator
Would my CIBIL Score improve instantly?
No. This is only a tool that would tell you what can happen to CIBIL Score in the future based on your action. You need to execute the action and wait for a couple of months to reflect your score in CIBIL system.
Would CIBIL Score simulator affect my existing credit score?
No. It would not affect your existing score unless you take action further based on the simulation you might have done.
You may like: What options you have on PPF Maturity?
Why CIBIL Score simulator does not show any change in my score in spite of playing with different scenarios in the tool?
This simulator would consider changes that are relevant to your credit history. If you are simulating more than 1 parameter, it can so happen that one is creating negative impact on your score and other is creating positive impact and net change might be zero change or minor change. Make one change at a time to see how it is impacting your score.
Who should use CIBIL Score simulator?
If you have a good credit score, you don’t need to worry.
Individual who have bad or pathetic credit history as they might be delaying credit card payments or defaulting credit card bills or home loans can consider this tool to improve their score. While this tool would help you to know where you can stand with a change in a parameter, one need to actually implement the change and wait for 2-3 months to reflect the actual in the CIBIL Score.
Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.
- 8.25% Indore Municipal Corporation NCD Green Bonds – Feb-2023 – Should you Invest or Avoid? - February 8, 2023
- 5 Top Rated Mutual Funds from Value Research in 2023 (18% to 22% returns) - February 6, 2023
- Kotak Banking & Financial Services Fund – NFO Details and Review - February 4, 2023