How Is The CIBIL Score Calculated If I Use Accounts In Multiple Banks?

Maintaining good CIBIL score is difficult for multiple credit accounts. Get to know how CIBIL score is calculated for multiple credit accounts at IIFL Finance.

20 Oct,2022 16:18 IST 738 Views
How Is The CIBIL Score Calculated If I Use Accounts In Multiple Banks?

A savings account, current account, account for daily expenses, account for loans–there’s no end to the number of accounts you can open. With so many accounts it might seem impossible to track the credit history and the CIBIL score. But what is a CIBIL score and how is it calculated if I use accounts in multiple banks?

What Is A CIBIL Score?

A CIBIL score is a three-digit number that depicts the creditworthiness of an individual. This number is vital when you visit any financial institution to apply for a loan. Lenders consider a CIBIL score to evaluate the probability of the borrower defaulting.

How Is My CIBIL Score Calculated If I Use Multiple Bank Accounts?

Now, what is CIBIL score would be and how is it calculated? It is noteworthy that the CIBIL scores are not directly tied to bank accounts. Your credit score is based on your credit report data. Thus, regular banking activities have little effect on your credit score. A credit report doesn't record information about your banking transactions in the same way it records information about your credit cards, student loans, mortgages, and other debts.

A credit score calculation includes the following factors.

Factor Weightage
Credit repayment history 35.00%
Loan amount the borrower owes 30.00%
Years of debt servicing 15.00%
Total number of availed loans 10.00%
Credit mix 10.00%

How To Maintain A Healthy CIBIL Score On Your Credits?

Having multiple credit accounts doesn't affect your CIBIL score, but a lack of discipline in paying off your debt does. Maintaining a good CIBIL score can be challenging if you have multiple credit accounts. But, with the following things in mind, it’s not impossible.

• Make Timely Payments:

Clear your dues on time to avoid getting your name in the defaulter’s list. Do everything in your capacity to never miss an EMI or full payment of credit cards.

• Avoid Multiple Applications Simultaneously:

Multiple prospective credit/credit card applications from banks and non-bank financial institutions create a negative impression on your creditworthiness and increase the chances of your loan rejection. It will affect your CIBIL score.

• Keep The Application Frequency Low:

Applying for loans frequently within a short period is a sign of credit hungriness. Place them appropriately so as not to reflect your desperation to get a loan immediately.

• Keep Reviewing Your Score:

Review your CIBIL report to check your score before applying for a credit card or loan. Thoroughly review your transaction list to ensure there are no incorrect dates, repetitions, omissions, or fraudulent transactions. These inaccuracies affect your CIBIL score and increase your chances of rejection of your loan or credit card application at no risk to you.

Avail Of A Loan With IIFL Finance

IIFL Finance is one of the leading loan providers in the country. You can avail of quick loans with small financial requirements with minimum eligibility criteria. We provide competitive interest rates and favourable loan terms. Check the rates at your nearest IIFL Finance branch or explore online. Apply for a loan with IIFL Finance today!

Frequently Asked Questions

Q.1: What is a CIBIL score, and how is it calculated?
Ans: A CIBIL score is a three-digit number that depicts the creditworthiness of an individual. It considers various parameters like debt repayment history, timeliness of debt repayments, frequency of loan and credit card applications and rejections, number of existing loans and credit cards, etc.

Q.2: Do multiple bank accounts affect my CIBIL score?
Ans: Generally, CIBIL scores do not relate to bank accounts. Your credit report data determines your credit score. Thus, normal banking activities have little effect on your credit score

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

Most Read

Franking and Stamping: What’s the difference?
14 Aug,2017 03:45 IST
Like 2907 2907 Likes
Personal Loan With Low CIBIL Score
21 Jun,2022 09:38 IST
Like 575 575 Likes
Difference Between 24 Karat and 22 Karat Gold
8 Dec,2022 09:26 IST
Like 165 165 Likes
What is equitable mortgage home loan?
8 Mar,2019 05:15 IST
Like 3204 3204 Likes

Get in Touch