A CIBIL score is basically a three-digit numerical summary or representation of a person's credit history that is generated from the records of bank and financial institutions, reflecting in a credit report. Your credit score can be anything between 300 and 900, with 750 above score considered as a good, and anything lower a bad impression about your credit behaviour.
It may seem difficult to maintain a great credit score, but it is not impossible if you maintain a healthy financial journey by paying EMIs, bills, loans in time, and using the credit cards wisely, making genuine and less credit enquiries over a period.
The greatest imprint your credit report has about is the payments. If your financial management has been consisted, then you may not have defaulted in payments by skipping or delaying any. Also there won't be much of a financial negligence, thus the credit score shall remain 'good'. A low CIBIL score goes against all these factors and assesses you as a defaulter in payments or EMIs.
The score on your credit report not only signifies your financial roadmap but will hold importance on reviewing your candidature at a workplace, loan or credit card application, and securing house on rent.
Not only your credit report, but your repayment capacity also improves if you follow a meticulous and careful financial planning. If you tend to expend more than you earn, at some point of time, you will require credit, and banks or lenders won't find you an eligible candidate for loan application, if they understand that you have the habit of expending more than you can pay back for your expenses.
Thus, maintaining a healthy financial history is not only essential in the present but also for future, as your economical track record is expressed in credit report, which is referred by financial institutions and banks to consider your candidature for loan and credit card applications.