Last update:
The report with CIBIL score will have complete details of your credit history for various lenders and products such as home loans, automobile loans, credit cards, overdraft features and more.
The CIBIL score helps the lender in assessing the borrower’s capacity.
Understanding CIBIL score: You must have heard about the word ‘CIBIL score’ here and there. When it comes to applying for a loan or credit card, the word ‘Whats Your CIBIL score’ is often thrown on you. Do you wonder what is the CIBIL score? And if yes, how can you find out what is your CIBIL score?
Let’s understand about a CIR report, CIBIL score and how to get it.
What is CIBIL score?
CIBIL score is an account details of a person. In simple terms, this is your credit history, rating, and report and 3-conductive numerical summary of the range of 300 to 900. More than 700 is considered a cibil score good, while below 300 is classified as poor. The score is obtained using the credit history found in the CIBIL report (also known as CIR IE Credit Information Report).
This Credit Information Bureau (India) is given by Cibil. The agency has been licensed by the Reserve Bank of India.
How to get your CIBIL score?
CIBIL can buy scores and reports through the official website of Cibil.com. You have to choose one of the available options. The CIBIL score is available for membership of above Rs 550 per month.
The report with CIBIL score will have complete details of your credit history for various lenders and products such as home loans, automobile loans, credit cards, overdraft features and more.
A CIR does not know your savings, investment and fixed deposits.
Why is a good cibil score important?
An important factor in the loan application process is CIBIL score. The lender first sees and reports the CIBIL score of the applicant when they contact the bank or other financial institutions for the loan. If the CIBIL score was bad, the bank could not give the application another form. The lender will review the application and if the CIBIL score is high then the additional information will be taken into account to assess the credibility of the applicant.
A high CIBIL score increases the possibility of reviewing your debt and being approved as it acts as the first impression of the lender. The bank alone decides to lend, and CIBIL has no to say whether a loan or credit card has been approved.
