This section consists of all details related to your credit accounts. Usually, the account information is divided into segments such as revolving accounts like credit cards, instalment accounts like car loans, real estate accounts like home loans or loans against property, as well as any collection accounts. This section includes details on the kinds of credit accounts that you had in the past or have currently, along with the details regarding the balance. Here are the four most important sections in your CIBIL report 1. Given that it is a comprehensive document with multiple sections, it is important for you to know how to read your credit report. This will help you understand your report better and even check if it does justice to your credit history. Lenders like banks and non-banking financial companies.Some common parties who may view your credit report are as follows: Various parties or organisations view this credit report. It includes your personal information, contact information, employment history, credit limit on various credit cards, credit balances, and dates on which you opened various accounts. The credit report is a detailed document that highlights your entire credit history and record. How to read your CIBIL report or credit report Thus, keeping your CIBIL score above 685 is essential. You may be offered a higher personal loan interest rate if your score is close to 685, or your application may be rejected outright if it is much lower. However, if your CIBIL score is below 685, you will find it harder to borrow funds from banks and NBFCs. It will aid in qualifying you for personal loans and credit cards. A CIBIL score of 750 or above in your credit report is ideal. CIBIL score rangeĬIBIL scores can range anywhere between 300 and 900, with 900 denoting maximum creditworthiness. Your credit report is the basis on which you are given a credit score. Apart from this, these credit information companies also provide an in-depth credit report. Likewise, if you have a credit history that is less than 6 months old, you will receive a credit rating of 0. However, one thing that is common between all scores is that if you have no credit history, your score will be -1. Each of these organisations has its unique scoring system. Others include Equifax, Experian, and High Mark. CIBIL started its activities in 2001 and has since been one of the most popular credit information companies in the country. The RBI has licensed four companies to access and manage credit information in India. A business credit score could also impact its ability to attract investment.Īdditional Read: Save 45% on personal loan EMI Background of credit score in India For a business, the CIBIL score impacts how creditworthy a lender will find the company. While you as an individual have a score, even businesses are given credit scores. Your credit score is critical when it comes to unsecured or collateral-free loans and can affect your eligibility for personal loans to a great extent. Your credit score allows lenders to judge the potential risk in lending you money. Thus, it directly impacts how eligible you are for a loan, what the lender will offer you as a loan amount, and the rate of interest you will be charged. Your credit score is important because it showcases how dependable or risky you are as a borrower. Similarly, when your credit score is high, it shows that you have borrowed and repaid credit responsibly in the past. If your batting average is above 50, then it means that you have a consistent scoring record of 50, and you are a good player. Think of your credit score as a batting average. Your credit score may be defined as a rating that reflects your creditworthiness. The below table enlists what a particular CIBIL Score range signifies and, consequently, the probability of approval of loans:Īdditional Read: Credit rating agencies in India What is your credit score? Why is it important? Since CIBIL is one of the most trusted credit information companies in India, its score is referred to as your credit score. This information refers to all financial transactions where you have borrowed or repaid the money.Ī good CIBIL Score is a score between 700 to 900, which means the borrower has a higher chance of getting a higher loan amount at a low-interest rate.ĬIBIL has access to the credit information of around 600 million people and has 2,400 members that include lenders of all varieties. The words ‘CIBIL score’ are often used synonymously with ‘credit score’ and refer to a three-digit score between 300 and 900. CIBIL stands for Credit Information Bureau India Limited, an Indian credit rating bureau that has access to your credit information.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |