CIBIL score is a score given based on a customer's credit history. The credit report contains a score which signifies the person's creditworthiness during credit card or loan applications. The scoring system enables banks and financial institutions to identity the risk-factor involved in sanctioning a loan or credit card for an individual.
The CIBIL score is decided based on the customer's financial records such as those dealing with income, loan accounts, outstanding debt, length of credit history, loan enquiries made, defaulter status of the past, payment of EMIs, type of loans, and more.
It is possible to get loan approval even on a low CIBIL score, but the interest rates in loan agreement would be higher than otherwise. Sometimes people with no credit history or CIBIL score are in need of a loan as well. That time, the person can seek option to get a loan based on other eligibility factors, and convince the bank that he/she has the capacity to repay.
Credit score are unaffected by a person's race/ethnicity, religion, gender, savings accounts, gender, and other few more aspects.
A credit score of 750 and above or 900 proves you are creditworthy for borrowing and repaying the loan amount in time. A low credit score has just the opposite effect and can cause rejection of your credit card and loan application.
A good credit score as per bank's standards can mean approval or rejection for a loan or credit card request. Some employers today ask for bank statements of candidates to evaluate their financial records and understand the credit behaviour, before hiring them in workplaces. Credit score, if high, can allow the person get fair deal of lower interest rests on loan, especially home loan and house rent discounts.