CIBIL provides you with a three-digit number that serves as your credit score, which is called a CIBIL TransUnion Score. The score ranges from 300 to 900 and it plays an instrumental role in your loan approval process. If your score is closer to 300, lenders may view you as high risk and deny your application. If your score is closer to 900, you will likely have a seamless application process and can negotiate better interest rates.

Your credit report contains the following information:

• Personal Details - Here, you'll find your name, address, date of birth, employment information and PAN.
• Credit History - All the details about your financial accounts, including the day you opened your account, your credit limit, account balance and payment history are outlined here.
• Public Records - Any foreclosures, garnishments, legal suits and judgements are recorded here.
• Enquiries - If a creditor has accessed your credit report in the past, it will get recorded in this section.

Your credit score gets evaluated based on your:

• Payment History - Any late payments or bankruptcies could affect your credit score.
• Amounts Owed - Your debts and credits are evaluated here. If you owe more than your credit limit, it will negatively impact your score.
• Age of Credit History - Your credit history starts from the first time you start a credit account. A longer credit history will be viewed favourably.
• New Credit - New credit requests, such as an application for a new credit card can indicate your risk. Multiple credit requests in a short span of time translate to higher risk for lenders.
• Types of Credit Used - Your credit accounts and the number of instalment-type accounts are checked here. A diverse credit portfolio can benefit your credit score.

If you have a good credit report and score, you can benefit from:

• Quick loan approvals
• Better deals on interest and higher loan amounts
• A fair loan approval process

Only you and the financial institutions you authorise with an application signature can view your credit report. Some banks can also check your credit score and report to provide a pre-approved loan or credit offer.

Ideally, you should check your credit score on a quarterly basis. If you've never checked your credit score before, there's no better time than right now. Checking your score helps in two ways. Firstly, it gives you an indication of your financial health and provides you with information on where you can improve your score. And, you can also go through your score and report to check for any fraudulent activity. If you find any incorrect information, you can report it to the bureau.

While your credit score does play a crucial role, it is not the only deciding factor. Different lenders have their own underwriting policies. Some financiers may provide loans to individuals who have a score of 700, while others may need you to have a minimum credit score of 800. Conversely, if you spend more than 50% of your monthly income on repaying outstanding debts, your loan application could get rejected despite the fact that you have a high credit score.

Depending on your financial behaviour, an educational loan could improve your credit score. If you pay your EMIs in a timely manner, it could boost your credit rating. But, late payments or defaulting on your loan will negatively impact your score. If you're struggling financially, please talk to your lender and work towards a solution that keeps you, your finances and your credit score intact.

Once you take a loan, your lender reports your transaction history to the credit bureau. If you do not make your payments on time, it negatively impacts your credit report and score. If you default on a loan, you may not be able to get a loan in the future. Kindly ensure you pay your dues on time or get an extension whenever required.

A relative's bad credit report could affect you if you are dependent on them or they act as guarantors for your loan. Any negative credit history could hamper your chances of getting the loan you require.

Yes, your credit history can impact your job search. Several multi-national, financial and IT companies run thorough background checks on all applicants and even check their credit history. In many cases, they might run an international credit check in case you've worked or lived abroad. If you have not been able to manage your finances and repayments in the past, you may not get selected for the job.

You can work towards building your credit score by improving your debt to credit ratio. You should avoid applying for too many loans within a short span of time as lenders could view that as risky behaviour. Whenever possible, repay your dues on time and you can improve your credit score and report.