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The report, along with the CIBIL score will contain full details of your credit history across various lenders and products such as home loans, automobile loans, credit cards, overdraft facilities, and more.
CIBIL score helps lender to assess a borrower’s potential.
Understanding CIBIL Score: You must have heard about the word ‘CIBIL score’ here and there. When it comes to applying for a loan or a credit card, the word ‘what’s your CIBIL score’ is often thrown at you. Do you wonder what the CIBIL score is? And if so, how can you find out what is your CIBIL score?
Let’s understand in a comprehensive way all about a CIR report, CIBIL score and how to get it.
What Is A CIBIL Score?
A CIBIL score is a person’s credit statement of account. In simple terms, it is a 3-digit numeric summary of your credit history, rating, and report and ranges from 300 to 900. A CIBIL score over 700 is considered good, while below 300 is categorized as poor. The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report).
It is given by the Credit Information Bureau (India) Limited (CIBIL). The agency has been licensed by the Reserve Bank of India.
How To Get Your CIBIL Score?
One can purchase a CIBIL score and report via the official website of cibil.com. You have to choose a subscription pack among the options available. CIBIL score is available for the subscriptions above Rs 550 pack per month.
The report, along with the CIBIL score will contain full details of your credit history across various lenders and products such as home loans, automobile loans, credit cards, overdraft facilities, and more.
A CIR does not contain information on your savings, investments, and fixed deposits.
Why Does A Good CIBIL Score Important?
An important factor in the loan application procedure is the CIBIL score. The lender first looks at the applicant’s CIBIL score and reports when they approach a bank or other financial institution for a loan. The bank could not even give the application another look if the CIBIL score was poor. The lender will review the application and take into account additional information to assess the applicant’s creditworthiness if the CIBIL score is high.
A higher CIBIL score increases your chances of having your loan reviewed and approved because it serves as the lender’s first impression. The bank alone decides to lend, and CIBIL has no say in whether the loan or credit card is approved or not.
