Will CIBIL score inquiry from multiple banks reduce my credit score?

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Will CIBIL score inquiry from multiple banks reduce my credit score?

Post by Admin on Thu Jul 06, 2017 1:50 am

Inquiry about CIBIL score will not affect your score while inquiry about credit (loans) from multiple banks can affect your CIBIL score. An indication is given by it that your particular credit hungry.

Quantity of credit inquiries has a 10% weightage in your CIBIL Score.

CIBIL score is determined by 5 major factors. Once you learn what your location is lacking, you can easily work at enhancing your CIBIL score yourself.

Following are 5 major factors:

Repayment History (35%) – Pay all your loan EMIs and credit card dues on time. Clear any defaults ASAP.

Credit Utilization (30%) –
Credit utilization ratio could be the ratio of total credit (liabilities) that you owe to your total credit limit. A very high credit utilization ratio is known as risky and has now a poor effect on credit history. So, you can look at reducing a number of your liabilities.

Duration of Credit Servicing (15%) – The actual quantity of time for which you have now been servicing credit (loan) has also an effect on the credit score. It will increase your credit score if you have been making timely payments for your loans/ credit cards for a longer period of time.

Credit Mix (10%) – A better credit mix for example. your credit (liabilities) spread across credit cards, car loan, personal loan, mortgage loan etc. also helps in enhancing your credit score.

Amount of Credit Inquiries (10%) – Whenever you submit an application for that loan or a charge card, the financial institution will run an inquiry on your own CIBIL report. More number of inquiries indicate that you will be credit hungry which will be not a sign that is good your credit health. Hence, higher amount of credit inquiries have a bearing that is negative your credit score.

https://www.mymoneykarma.com/ or for any loan related queries contact@ 7330755533

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