{"id":3387,"date":"2020-07-08T11:47:56","date_gmt":"2020-07-08T11:47:56","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=3387"},"modified":"2020-07-08T12:07:35","modified_gmt":"2020-07-08T12:07:35","slug":"know-about-all-the-factors-affecting-your-cibil-score","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/","title":{"rendered":"Know About All The Factors Affecting Your CIBIL Score"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"172\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/07\/Factors-Affecting-Your-CIBIL-Score--500x172.jpg\" alt=\"Factors-Affecting-Your-CIBIL-Score \" class=\"wp-image-3388\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/07\/Factors-Affecting-Your-CIBIL-Score--500x172.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2020\/07\/Factors-Affecting-Your-CIBIL-Score-.jpg 714w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><figcaption>Factors-Affecting-Your-CIBIL-Score <\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Good_or_Bad_%E2%80%93_A_credit_score_is_powerful\" title=\"Good or Bad \u2013 A credit score is powerful!\">Good or Bad \u2013 A credit score is powerful!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#What_are_the_factors_that_influence_your_CIBIL_score\" title=\"What are the factors that influence your CIBIL score?\">What are the factors that influence your CIBIL score?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Imperfect_Loan_Repayment_History\" title=\"Imperfect Loan Repayment History \">Imperfect Loan Repayment History <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#A_mix_of_Credit\" title=\"A mix of Credit \">A mix of Credit <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Multiple_Loan_Enquiries\" title=\"Multiple Loan Enquiries \">Multiple Loan Enquiries <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Existing_Debts\" title=\"Existing Debts \">Existing Debts <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Credit_Utilization_Ratio\" title=\"Credit Utilization Ratio \">Credit Utilization Ratio <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Credit_Repayments\" title=\"Credit Repayments \">Credit Repayments <\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/know-about-all-the-factors-affecting-your-cibil-score\/#Tips_to_Improve_CIBIL_Score\" title=\"Tips to Improve CIBIL Score\">Tips to Improve CIBIL Score<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Good_or_Bad_%E2%80%93_A_credit_score_is_powerful\"><\/span><strong>Good or Bad \u2013 A credit score is powerful!<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having a decent name in the industry is crucial for securing business loans from banks and other financial institutions. Companies need to maintain a profitable business throughout the year, which will speak for itself. So what is the parameter used by financial institutions and banks to measure a business? The CIBIL score or CCR (Company Credit Ratio) of your business is the yardstick to determine if a business is worthy of credit or not. Indifi is a platform that analyses data of various companies and assesses their creditworthiness. Higher the CIBIL score, the higher are the chances of getting a loan! Banks need to determine if their borrowers (business) are efficient in repaying the loan on time. The final scores will determine your eligibility for future loans and credits.\u00a0<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/best-tested-ways-to-improve-your-cibil-score\/\">Best-Tested Ways To Improve Your Cibil Score<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_factors_that_influence_your_CIBIL_score\"><\/span>What are the factors that influence your CIBIL score?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Imperfect_Loan_Repayment_History\"><\/span>Imperfect Loan Repayment History <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is a significant factor that can influence the CIBIL score of a business. It is a summary of all borrowings and repayments done on behalf of your business. A company might get a low credit score if it has a poor history of loan repayments. The unpaid debt indicates that the company is not worthy of managing its loans, thus lowering the CIBIL score. <br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_mix_of_Credit\"><\/span>A mix of Credit <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p> Businesses should maintain a healthy mix of both secured and unsecured loans. Having only one kind of credit will not improve their CIBIL score. A healthy blend of credits showcases the ability of a business to handle all types of debts successfully.<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Multiple_Loan_Enquiries\"><\/span>Multiple Loan Enquiries <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Do you know that making various loan enquiries can negatively affect the CIBIL score? One or two enquires are fine. But going beyond that can have some drastic effects on the creditworthiness of the business. When a company applies for a loan, its credit history is pulled out \u2014 this process of called hard inquiry. Multiple loan applications might lower the CIBIL score, as numerous hard questions are made at the same time. Companies should avoid making enquiries if they are not confident of their eligibility for getting a loan. Also, they should avoid applying for a loan immediately after their loan application has been rejected. They should wait for six months before re-applying, to let their CIBIL score improve.<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Existing_Debts\"><\/span>Existing Debts <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Company\u2019s existing debts can also affect its CIBIL score to a greater extent. For instance, if a company has multiple debts going on under its name, it can expect a lower rating, until it manages to repay all of them successfully. This situation can be prevented by not applying for multiple loans at the same time. <br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Utilization_Ratio\"><\/span>Credit Utilization Ratio <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Industry experts from Indifi, recommend keeping the existing credit utilization up to 30% of the income. If a company is continuously utilizing the credit up to the maximum limit, it indicates that it is credit hungry. This tendency can drop their CIBIL score drastically. This behaviour brings the business under the scanner, and its ability to repay loans on time becomes questionable. <br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Repayments\"><\/span>Credit Repayments <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>How can timely credit repayments improve CIBIL score? When a company decides to settle its loan with a considerable amount of money, in a single payment, it can have adverse effects on its CIBIL score. This action can raise some eyebrows, thus decreasing the score. On the contrary, if the company plans to repay the loan in regular instalments, it will have a positive impact on the score. <\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/how-to-check-your-cibil-score-using-your-pan-card\/\">How To Check Your Cibil Score Using Your Pan Card<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_to_Improve_CIBIL_Score\"><\/span>Tips to Improve CIBIL Score<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u2022&nbsp; &nbsp; Companies should be disciplined with their existing credits.<\/p>\n\n\n\n<p>\u2022&nbsp; They should maintain a durable and lengthy credit history.<\/p>\n\n\n\n<p>\u2022&nbsp; Companies should opt for the longest tenure for repaying the debts.<\/p>\n\n\n\n<p>\u2022&nbsp; Regular checking of CIBIL reports and rectifying them can improve the score.<\/p>\n\n\n\n<p>\u2022&nbsp; Create a credit history that comprises of different types of debts.<\/p>\n\n\n\n<p>\u2022&nbsp; Maintaining a healthy mix of debts.<\/p>\n\n\n\n<p>\u2022&nbsp; Avoid taking a massive amount of debts at a single time.<\/p>\n\n\n\n<p>Advantages of a High CIBIL Score<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; Debts with longer tenure.<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; Lower interest rates on loans.<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; Better negotiation.&nbsp;<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; The higher limit for a credit card.<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; Discount on debt processing charges and other fees.&nbsp;<\/p>\n\n\n\n<p>\u2022&nbsp; &nbsp; Faster approval on credit applications.<\/p>\n\n\n\n<p>These are the significant factors that can affect your CIBIL scores. Many small business owners face problems due to low access to capital that hampers the growth of their business. Indifi is a leading name in this sector that offers loans to the companies that have both intent to repay and the potential to succeed. It collects the relevant loan applications and provides them to multiple lenders. This method makes the loan process shorter by reducing paperwork, minimizing risk, and other expenses. It is a medium between the lenders who are looking for suitable borrowers and the small scale business owners who are looking for lenders. Small businesses should follow these useful tips to maintain a good CIBIL score.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/tips-on-increasing-your-cibil-score-by-using-your-credit-card\/\">Tips On Increasing Your Cibil Score By Using Your Credit Card<\/a><\/p>\n\n\n\n<p><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good or Bad \u2013 A credit score is powerful! Having a decent name in the industry is crucial for securing business loans from banks and other financial institutions. Companies need to maintain a profitable business throughout the year, which will speak for itself. So what is the parameter used by financial institutions and banks to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3387"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=3387"}],"version-history":[{"count":2,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3387\/revisions"}],"predecessor-version":[{"id":3391,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/3387\/revisions\/3391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/3388"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=3387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=3387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=3387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}