CIBIL stands for Credit Information Bureau (India) Limited. It is an ISO 27001:2005 company, founded in the year 2000 and an integral part of Indian financial system. It is also India's premier Credit Information Company (CIC). CIBIL works in association with and Dun and Bradstreet and TransUnion International Inc.
The organization records credit related details of individuals, which directly reflect from registered member institutions. It also has prime segments such as Commercial Bureau and Consumer Bureau, the latter keeps the credit records of people and the former maintains credit records belonging to companies/institutions.
CIBIL has a certain clout in the Indian financial system. It comprises of vast ownership structure and has popular banking and non-banking firms associated as major stakeholders. The most essential is TransUnion International Inc. It is a data analytics company, which helps businesses in taking decisions to manage risks. And has 66% stake hold in CIBIL.
TransUnion International Inc is also into information management. The rest 34% of shares is distributed in 8 parties (ICICI Bank Ltd 6%, Bank of India 5%, Bank of Baroda 5%, Union Bank of India 5%, Indian Overseas Bank 5%, Aditya Birla Trustee Co. Pvt. Ltd 4%, India Infoline Finance Ltd. 1%, and India Alternatives Pvt. Equity Fund 2.9%), that have stakes between 1% and 6%.
CIBIL gives credit scores and reports to those that ask/enquire for it. This includes institutions, lenders, and individuals requiring their own credit report or score. Lenders check the credit score of applicant when they are approached for credit lending by individuals. A score of 750 and higher is noted as a good score for disbursing monetary aids.
Numerical expression of credit history from credit files judges your creditworthiness. CIBIL score is calculated on your credit report, set on specific algorithms. At least 6 months of historical financial data is taken into account to obtain a CIBIL score.
A CIBIL score can vary between 300 and 900, the latter considered the best. Here is an explanation to different CIBIL scores.
People with no credit history creation through loans or credit card are given the score of 0. To create a CIBIL score, you must consider taking a loan or start a credit card transaction.
This score is said to be bad, which also means that you have defaulted in payments, and chances of receiving credit cards or new loans are limited.
You are deemed as a person who has a fair share of CIBIL score that is you may be making regular payments, and can be trusted with credit cards and new loans. Your loan application may get approved
You are doing well, and will not face many difficulties in getting a loan or credit card. Sticking to this credit habit is advisable to reach a better score.
If you fall in this score range, means you are a mastermind of your finances, and are regular with your credit card payments and maintain a sound payment history. Any lender, bank, NBFC will be prepared to trust you with loans at such a score.
Visit the CIBIL website, login and click 'know your score' tab and receive personalized credit score. You must fill an online form and provide your name, income, and date of birth, identity proof, phone number, and address along with the loans taken. Then you must pay a fee and your CIBIL score is then emailed to you.
A high CIBIL credit score means good track record of repayment of loans and credit card bills and less probability to default, while a low CIBIL credit score conveys poor track record of loan repayment and high probability to default.
You can check your CIBIL score once in a year, and this practise is called 'soft inquiry'. While issuing a credit card or evaluating a loan application, the provider may make a 'hard inquiry'. Multiple inquiries because of applying for loan in several banks will affect your credit score negatively.
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