Debt and Credit rating holds a unique relationship as one cannot endure without the other. You cannot get credit without a credit rating and a credit rating without debt. Thus, they are linked to each other in one or the other way. It seems a bit confusing but is not; in fact, it is pretty simple and candid.
You can get a CIBIL report if and only if you have a debt or had it in the past. Also, a minimum credit history of six months is required for having a CIBIL report, and it is not possible without a debt involved. You must know that applications for a loan are merely rejected or accepted on the basis of your CIBIL score.
Credit card payments and loans are the most basic forms of debt. Your CIBIL score depends on how well you handle your debts. Factors like not paying your dues on time or completely ignoring them can lead to lowering the CIBIL score. This can lead to banks avoiding any future interactions with you.
Your CIBIL score may reflect positively if you tend to bounce between the set of secured debt and unsecured debt. It shows the financial institutions that you are not an impatient borrower and are willing to pay the collateral damage against a loan.
Debt and CIBIL score is a two-way bridge. If a debt affects your CIBIL score, the CIBIL score will also impact your debt. On the basis of your CIBIL score, your creditworthiness is decided by the banks and other financial institutions. A bad CIBIL score can lead to the rejection of your debt application, on the other hand, a good CIBIL score can land you your loan as fast as possible.
