Credit score has become very important in today's time. Whether you want to take a personal loan for any sudden need, take a car loan to buy a new vehicle or need a home loan to fulfil your dream of owning a house, you are going to need a credit score on every occasion. Due to this, the importance of credit scores increases.
What is credit score and report?
There are many types of credit scores. Different credit bureaus like CIBIL, Equifax, and Experian prepare their own credit scores. CIBIL credit score is accepted the most in Indian banks. CIBIL provides credit score and credit reports to banks and financial institutions. Banks decide on the basis of your credit score and credit report whether they should give you a loan or not. These are also needed to get a credit card.
Due to these reasons, the report gets spoiled
Credit score depends on many factors. If there is a delay in repaying the loan instalment, any dues are settled or the entire limit of credit cards is utilized, the credit score falls. However, as soon as people fix these things, the score starts improving. However, these flaws remain recorded in the credit report for a long time. Let us know how much time it takes to remove the report.
Time to get the report corrected
According to a report, CIBIL's credit report may take 7 years to recover. If you delay in making any payment i.e. are not able to make the payment till the due date, then this information gets recorded in your credit report for seven years. Similarly, if you default or settle the dues with the bank, then these things also remain visible in the report for seven years. Information like bankruptcy and court judgments also remains in the report for seven years.
This score is considered good
CIBIL credit score ranges between 300 to 900 points. Generally, a CIBIL score above 700 is considered good. Many banks consider a score above 750 as good. Based on credit scores and credit reports, banks find out how capable and honest the concerned customer is in repaying the loan instalments. If the credit score is good, customers also get the benefit of lower interest rates.
