Here are some of the factors that are taken into account by credit information bureaus or agencies while assigning a credit score:

• Credit usage
• Type of loan accounts(consumer loans, home loans etc.)
• Duration of the loan account
• Number of enquiries made to avail credit / loan
• Payment history

Based on the factors that are given above, the final score is given that ranges between 300 and 900.

A higher score means a better credit worthiness. Ideally speaking any score of above 750 is considered to be a goog one.

Simply put, if you have a credit score of above 750, it would be considered that you are a better borrower as you probably make your payments on time. The lenders that may lend you money face a lower risk.

But if your credit score is low, it would inply that

• Lenders may charge you a higher rate of interest if they extend a loan
• You may find it difficult to get a loan in future
• Lenders would capitalise on higher loan processing fee

The reason for this is that with a low credit score, lenders are exposed to high risk of default.

Therefore, as a responsible individual, you should always endeavour to keep your credit score healthy. Make it a point to bite only as much you can chew. You should refrain from opting for too many loans that can impair your credit score and jeopardise your long-term financial wellbeing thereby pulling you into a debt-trap.

Now, CIBIL offers one free report along with the credit score, every year. The intent is to help create awareness among borrowers about their creditworthiness so that corrective measures can be taken to improve the credit behaviour. If you wish access your free CIBIL score follow these 6 easy steps:

On this page, scroll down to the button – "GET YOURS NOW" and click on it.

A new page will open now and you would need to fill in your personal details such as username, password, Full name, etc. Please fill it carefully and click on the "Continue to Step 2" button.

In this new page you would be requested to fill additional details like date of birth, gender, address and identity proof. Fill in the details and press the button "I Accept & Continue to Step 3 "

Once all your details are submitted you will receive an OTP in your registered mobile number and email. Enter the received OTP and press on the "Continue" button.

Once the OTP is verified a message "You have successfully enrolled" will be displayed. Now click on the "Go to Dashboard" button to view the CIBIL Score.

Now your personal dashboard would be displayed showing your CIBIL Score.

Note : The username and password set by you can be used in the later to view your updated CIBIL Score.