CIBIL Score
CIBIL Score
A CIBIL score is a three-digit numeric summary that determines your creditworthiness. Ranging from 300 to 900, the CIBIL score is provided by the Credit Information Bureau (India) Ltd., a credit rating agency which is authorized by the Reserve Bank of India (RBI).
A CIBIL score is a three-digit numeric summary that determines your creditworthiness. Ranging from 300 to 900, the CIBIL score is provided by the Credit Information Bureau (India) Ltd., a credit rating agency which is authorized by the Reserve Bank of India (RBI).
What is Full Form of CIBIL
The full form of CIBIL is Credit Information Bureau (India) Limited (CIBIL). It is an RBI authorised credit bureau which manages and collects information about credit history of a person, company or public and private establishments.
The full form of CIBIL is Credit Information Bureau (India) Limited (CIBIL). It is an RBI authorised credit bureau which manages and collects information about credit history of a person, company or public and private establishments.
Difference Between CIBIL Score and Credit Score
One of the four main credit bureaus in India, CIBIL is associated with numerous major banks, Non-Banking Financial Companies (NBFCs), and housing finance companies. Experian, Equifax, and CRIF Highmark are the other three prominent bureaus. The Reserve Bank of India has granted licenses to each of these credit agencies. The CIBIL score refers to the credit rating determined by CIBIL.
Your creditworthiness as a potential borrower is indicated by your credit rating. Your credit history, including the total amount due, credit card bills, repayment history, the number of credit accounts you have, and the credit utilisation information are taken into account when calculating your credit score.
One of the four main credit bureaus in India, CIBIL is associated with numerous major banks, Non-Banking Financial Companies (NBFCs), and housing finance companies. Experian, Equifax, and CRIF Highmark are the other three prominent bureaus. The Reserve Bank of India has granted licenses to each of these credit agencies. The CIBIL score refers to the credit rating determined by CIBIL.
Your creditworthiness as a potential borrower is indicated by your credit rating. Your credit history, including the total amount due, credit card bills, repayment history, the number of credit accounts you have, and the credit utilisation information are taken into account when calculating your credit score.
What is a Good CIBIL Score
A good CIBIL score is between 720 and 900 and is solely based on your credit history and behaviour. This helps borrowers avail various benefits such as higher loan amounts, faster loan approvals, and lower interest rates. A CIBIL score of 750 and above is considered a good CIBIL score in the case of an unsecured loan. If you have a good CIBIL score, you are more likely to avail high interest rates as well as get loans faster. You can save a lot of time as well as money.
A good CIBIL score is between 720 and 900 and is solely based on your credit history and behaviour. This helps borrowers avail various benefits such as higher loan amounts, faster loan approvals, and lower interest rates. A CIBIL score of 750 and above is considered a good CIBIL score in the case of an unsecured loan. If you have a good CIBIL score, you are more likely to avail high interest rates as well as get loans faster. You can save a lot of time as well as money.
What is a CIBIL Report
A CIBIL report, also known as a Credit Information Report (CIR) is a document listing all your borrowings and repayment histories. The CIBIL score or rating is derived out of this data as well as other variables that affect your financial position. CIBIL scores have become the benchmark for creditworthiness in India. The credit report is a report that includes your credit score as well as other details on all your financial transactions related to credit. Your credit score is just a part of the report, which has a 3-digit number which will be anywhere in the range of 300 - 900.
The credit score is a depiction of your creditworthiness, while your report will include payment history, number of loans, your outstanding balances of any loans, the total of your credit limit, and loan details of all loans taken from a diverse pool of lenders. The credit report is more like a report card for your credit, and the credit score is like the percentage you get on your report card. The higher your credit score is, the better it is for you. An average score of 750 is considered good for lenders to provide you with good deals and better rates of interest.
A CIBIL report, also known as a Credit Information Report (CIR) is a document listing all your borrowings and repayment histories. The CIBIL score or rating is derived out of this data as well as other variables that affect your financial position. CIBIL scores have become the benchmark for creditworthiness in India. The credit report is a report that includes your credit score as well as other details on all your financial transactions related to credit. Your credit score is just a part of the report, which has a 3-digit number which will be anywhere in the range of 300 - 900.
The credit score is a depiction of your creditworthiness, while your report will include payment history, number of loans, your outstanding balances of any loans, the total of your credit limit, and loan details of all loans taken from a diverse pool of lenders. The credit report is more like a report card for your credit, and the credit score is like the percentage you get on your report card. The higher your credit score is, the better it is for you. An average score of 750 is considered good for lenders to provide you with good deals and better rates of interest.
Credit Bureaus in India
A credit bureau is a company that gathers and analyses information about a person's or a company's credit transactions. These include the borrowing of loans, the use of credit cards, the use of overdrafts, etc., and their repayments. Additionally, information on Income Taxes, timely utility bill payment, and other matters may be included in this analysis. Lending institutions, data collection companies, money collection agencies, and other organisations provide such information. The four credit bureaus in India are listed below:
TransUnion Credit Information Bureau (India) Limited:- The most well-known credit agency in India is TransUnion Credit Information agency (India) Limited, also referred to as CIBIL.
- It was founded in 2000 and currently manages the credit histories of over 600 million Indians and 32 million corporate entities.
- The credit bureau offers comprehensive reports on the basis of credit statements from personal as well as commercial borrowers to its reputable partners.
Experian:- Experian, another credit bureau recognized by the Securities and Exchange Board of India (SEBI), was founded in 2006 and began operating in India in 2010.
- Individuals can obtain credit information reports which outline their credit history.
- Customer acquisition records, customer targeting and engagement reports, and other data can be accessed by companies and businesses.
CRIF High Mark:- CRIF High Mark is the only credit bureau authorized to conduct business in India by the Reserve Bank of India.
- It was founded in 2007 and received its operating license in 2010.
- It pertains to people, microfinance borrowers, medium and small enterprises (MSMEs), etc.
- The range of scores provided by CRIF High Mark is 300 to 850, with a score of 720 or higher being the best and a score of 640 or less being subpar.
Equifax:- Equifax, which is one of the three biggest credit bureaus in the world, started out as a retail credit business in 1899.
- It received its operating license in 2010 and provides credit scores, portfolio scores, risk scores, and others for people.
- These scores range in value from 1 to 999, with 999 representing the highest score.
A credit bureau is a company that gathers and analyses information about a person's or a company's credit transactions. These include the borrowing of loans, the use of credit cards, the use of overdrafts, etc., and their repayments. Additionally, information on Income Taxes, timely utility bill payment, and other matters may be included in this analysis. Lending institutions, data collection companies, money collection agencies, and other organisations provide such information. The four credit bureaus in India are listed below:
TransUnion Credit Information Bureau (India) Limited:- The most well-known credit agency in India is TransUnion Credit Information agency (India) Limited, also referred to as CIBIL.
- It was founded in 2000 and currently manages the credit histories of over 600 million Indians and 32 million corporate entities.
- The credit bureau offers comprehensive reports on the basis of credit statements from personal as well as commercial borrowers to its reputable partners.
- Experian, another credit bureau recognized by the Securities and Exchange Board of India (SEBI), was founded in 2006 and began operating in India in 2010.
- Individuals can obtain credit information reports which outline their credit history.
- Customer acquisition records, customer targeting and engagement reports, and other data can be accessed by companies and businesses.
- CRIF High Mark is the only credit bureau authorized to conduct business in India by the Reserve Bank of India.
- It was founded in 2007 and received its operating license in 2010.
- It pertains to people, microfinance borrowers, medium and small enterprises (MSMEs), etc.
- The range of scores provided by CRIF High Mark is 300 to 850, with a score of 720 or higher being the best and a score of 640 or less being subpar.
- Equifax, which is one of the three biggest credit bureaus in the world, started out as a retail credit business in 1899.
- It received its operating license in 2010 and provides credit scores, portfolio scores, risk scores, and others for people.
- These scores range in value from 1 to 999, with 999 representing the highest score.
A CIBIL score is considered good if it lies in the range of 700 and 900. This will be taken into account by banks and NBFCs when considering a loan application for most retail loans, whether it is a home loan or a vehicle loan.
A high CIBIL score, also called a credit score, has many benefits during the loan application process such as:
- Quicker and faster loan application process
- Easier loan documentation process
- Lower interest rates on the loan
- A higher quantum of loan
- Longer or more flexible repayment tenure
- Choose between multiple lenders so that you can select the loan that is the best for you. In addition, such a score will lead to a quicker and easier documentation process. When it comes to a home loan, you can expect up to 80% of the total cost of the property if you have a CIBIL score between 700 and 900.
Here is how you can check your CIBIL score:
- Go to the official CIBIL website
- Select 'Get your CIBIL Score’
- Type in your name, email ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar or Voter ID). Then enter your PIN code, date of birth, and also your phone number
- Click on 'Accept and continue'
- You will receive an OTP on your mobile number. Type in the OTP and select 'Continue'
- Select 'Go to dashboard' and check your credit score
- You will be redirected to the website, myscore.cibil.com
- Click on 'Member Login' and once you log in, you can see your CIBIL score.
- Go to the official CIBIL website
- Select 'Get your CIBIL Score’
- Type in your name, email ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar or Voter ID). Then enter your PIN code, date of birth, and also your phone number
- Click on 'Accept and continue'
- You will receive an OTP on your mobile number. Type in the OTP and select 'Continue'
- Select 'Go to dashboard' and check your credit score
- You will be redirected to the website, myscore.cibil.com
- Click on 'Member Login' and once you log in, you can see your CIBIL score.
Pay and Check Your CIBIL Score Online:
CIBIL credit ratings can be checked online by following a few simple steps, as outlined below.
- Log on to the official CIBIL website and click on Know Your Score.
- Fill up the online form which asks for details such as name, date of birth, address, id proof, past loan history and other relevant data.
- On filling the form and accepting changes, you will be taken to the payments page. You can choose from multiple modes of payment such as prepaid cards, credit cards, net banking etc. A payment of Rs.550 has to be made to CIBIL to get your credit report.
- After successfully making the payment, you will be taken to an authentication page. Here, you will be required to answer 5 questions related to your credit history of which you will have to answer at least 3 questions correctly to authenticate your identity with CIBIL. Your report will be sent to your email address within the next 24 hours.
- If authentication fails, you can fill and send a hard copy of the application to CIBIL by mail. You will subsequently also receive the report by mail.
CIBIL credit ratings can be checked online by following a few simple steps, as outlined below.
- Log on to the official CIBIL website and click on Know Your Score.
- Fill up the online form which asks for details such as name, date of birth, address, id proof, past loan history and other relevant data.
- On filling the form and accepting changes, you will be taken to the payments page. You can choose from multiple modes of payment such as prepaid cards, credit cards, net banking etc. A payment of Rs.550 has to be made to CIBIL to get your credit report.
- After successfully making the payment, you will be taken to an authentication page. Here, you will be required to answer 5 questions related to your credit history of which you will have to answer at least 3 questions correctly to authenticate your identity with CIBIL. Your report will be sent to your email address within the next 24 hours.
- If authentication fails, you can fill and send a hard copy of the application to CIBIL by mail. You will subsequently also receive the report by mail.
CIBIL Score Range
A CIBIL score ranges from 300 – 900, 900 being the highest. Generally, individuals with a CIBIL score of 750 and above are considered as responsible borrowers. Here are the different ranges of a CIBIL score.
NA/NH: If you have no credit history, your CIBIL score will be NA/NH which means it is either “not applicable” or no history”. If you have not used a credit card or have never taken a loan, you will have no credit history. You might want to consider taking credit, as it will help you in building a credit history and get access to credit products.
350 – 549: A CIBIL score in this range is considered as a bad CIBIL score. It means you have been late in paying credit card bills or EMIs for loans. With a CIBIL score in this range, it will be difficult for you to get a loan or a credit card as you are at a high-risk of turning into a defaulter.
550 – 649: A CIBIL score in this range is considered as fair. However, only a handful of lenders would consider offering you credit as this is still not the best CIBIL score range. It suggests you have been struggling to pay the dues on time. The interest rates on the loan could also be higher. You need to take serious measures to improve your CIBIL score even further for better deals on loan.
650 – 749: If your CIBIL score is in this range, you are on the right path. You should continue displaying good credit behaviour and increase your score further. Lenders will consider your credit application and offer you a loan. However, you may still not have the negotiation power to get the best deal on the rate of interest for loan.
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