New Delhi: Achieving or maintaining good credit scores is an important aspect before applying for loans as most banks check the consumer's CIBIL score and report before approving a loan.


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If you are credit-vigilant, you will surely know that checking your CIBIL score and report before applying for a loan or credit is an important step. A good credit score is afterall an integral part of your financial health.


Before applying for personal loans you must know some key things about CIBIL Score and how they impact your credit-worthiness because a bad CIBIL score may actually ruin your chances of getting an instant loan.


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What is a CIBIL score?


The Credit Information Bureau Limited or CIBIL issues you a three-digit number that is being calculated on the basis of your previous credit behaviour. CIBIL scores measure your creditworthiness and range between the lower range of 300 and upper range of 900. The closer you are to the upper range, the better are your chances of getting loan approval. 


The Credit Information Bureau (India) Ltd. (CIBIL) was incorporated in 2000 and launched its operations in April 2004. Following enactment of the Credit Information Companies (Regulation) Act (CICRA) in 2005, three other Credit Information Companies (CICs) were also set up.


What is the minimum CIBIL score for personal loan?


Usually, you can avail a personal loan if you have a CIBIL score of 750. Points below this may subject you to loan rejection or a loan approval with higher interest rate. 


What are the Key factors that determine your CIBIL score
The CIBIL score evaluates your past debt performance. 
It accesses the kinds of loans availed by you. 
It sees your Credit exposure.


How to check your CIBIL score?


You can check your CIBIL report online. Several financial holdings offering you personal loans also have this facility.