All you need to know about CIBIL score
CIBIL(Credit Information Bureau (India) Limited) is also referred as Credit bureau. In India CIBIL is the first company which provides credit information to the banks of the customers. It was established in Aug 2000. CIBIL was licensed by the RBI and governed by the credit information company’s regulation Act. 2005. CIBIL brings a greater transparency and efficiency in the credit space. There are many companies who provides credit information but the record of CIBIL is trustworthy.
A credit score is provided by three credit bureaus of RBI, they are Equifax, Experian and CIBIL. CIBIL score is a three digit control number issued to every customers. Which ranges from 300-900. Best score is 900. If you don’t have any credit history then your credit score is -1. In case, if you have credit history of a period of 6 months then your score will be 0. Credit history builds within 18-36 months period. CIBIL score was calculated based on payments, usage of credit card, Balance between secured and unsecured loans, number of new accounts opened, how much amount deposited in account, loan queries from different lending companies, etc. It was analysed by CIBIL on monthly basis information of the customer and a report is created called as CIR.
CIR is a nine digit control number. CIR is a report which consists of your information which encompasses- Personal information, Income, Employment details, Payment frequency, number of credit cards, last balance payment, date of last payment, credit limit, Amount of loans secured or unsecured loans taken, repayment tenure, restructured loans, name of the lender, bad debts, collateral, date of last payment, etc. A CIR doesn’t contain information about your savings and investments.
CIBIL Score changes as lenders report updated information of your credit accounts. Banks check your CIBIL Score before approving your credit applications. CIBIL score monitoring assists you to maintain your CIBIL score above 750. CIBIL score 750 is the minimum score to obtain the loan from any bank. Any banks first checks your CIBIL score before going to your documents and other details. If you have good CIBIL score banks will approve your loan in a short period of time. Maintaining good CIBIL score help you in future for applying loans. CIBIL score is categorised in to three types based on your credit score as Good, bad and no credit score.
How to get CIBIl score?
By filling a simple form from official site of CIBIl you can get your CIBIL score for just RS. 470. The application form encompasses a personal information and some other details after submitting, you will be redirected to payment gateway and charged Rs. 470. You can pay that using credit/ Debit or Net banking. After payment, you have to submit a few authentication details. Once, this authentication process is successfully completed, you will get your CIBIl score via email within 24 hours of time.
Before applying for any loan first check CIBIL score. If it’s good then go for loan otherwise try to improve your score by regularly checking from CIBIL official site.