The CIBIL is the trusted agency for collecting credit details and providing credit reports for the individuals. CIBIL Deals with Financial data of individuals such as loan and credit card information from different banks and other financial companies in India. the collection of all financial details of individual form a Credit Information Report(CIR).
CIBIL stepped in at 2000 and they are in midway to expand their existence throughout the country.
Know About CIBIL Score/ Credit Score:
CIBIL Credit score is a number that holds your credit history of individuals. It includes all the details of your credit information from the past. it also monitors your status in repaying the credits. It also looks for the missed payments and for unpaid loans. it holds complete credit details to tell your past financial background.
A Credit score is generated based on your credit history on the intensive in-house algorithm calculations. CIBIL is known for its transparency in maintaining important credentials to leading banks. CIBIL Score ranges from 300-900, 300 holding least and 900 holding max.
Credit Scores are generated by checking the financial track history of 6 months. the data collected are manipulated with the algorithm with varying variables.
Credit / CIBIL Score Range
A CIBIL score can range from 300 to 900 with 300 being the bottom end and 900 being the best score possible. Here is what your score tells.
0 to 1: If your score is 0 then it just means that you have no credit history created via a credit card or loans. You might want to consider taking one so that you can get a credit history going.
350 to 550: Alarms should be ringing because this is a bad score. It means you have been defaulting on payments and the chances of getting new loans/credit cards are less.
550 to 650: This is an acceptable condition where it indicates that you are fairly regular with your payments and can be trusted with new loans and cards. Your loan applications are also likely to be approved.
650 to 750: You are on the right way. You will not face too many problems with loans as well as credit cards and you should stick to your current habits so that will help you in reaching the best CIBIL scores too.
750 to 900: This is the best range to be in because CIBIL scores say that you are a perfect financial guru. You are regular with credit payments and have a really good payment history. Banks will tend a very well to offer you credit products with such a score.
How does Credit Information Benefits you?
- It will help you in analyzing the true financial standing and making plans for future finances.
- You can be on top of your borrowings and avoid debt traps.
- Holding a good Credit Score, you will be in a great position to make decisions regarding availing new forms of credit, while also being able to extract the best possible rates from banks or other lenders.
- It will help you in cultivating financial discipline.