What do you know about CIBIL SCORE?
Earlier, when banks used to give us loans, they used to maintain all the records of the customer manually, then the bank or finance companies did not have any record about the customer of another bank, if a customer did fraud then the other bank or Finance companies were not fully aware of this.
Due to which the default customer also got the loan easily. Later, when it was realized that such an institution should be created which has all the information about the customer’s credit information and when the bank or finance company gives loan to the customer, then before giving the loan, all the credit information of the customer should be known to him and he On the basis of that, decide whether to give loan to the customer or not.
Now suppose a customer wants to take a loan, then the bank checks all the records about that customer with the cibil, so that it comes to know that the loan will be right or it will be risky. If the bank or NBFC comes to know about the payment history of the customer correctly, then it can give loan easily. CIBIL , all the records about the customer come from where the customer has taken and how much loan has been taken, customer is giving loan or not, late. All these records can be traced by CIBIL.
Now any bank gives loan, then all the information of the customer’s loan CIBIL from time to time, which CIBIL .the bank will give you a loan or not, it all depends on your CIBIL SCORE.
What is CIBIL SCORE?
We can say that CIBIL report is a type of credit information about any customer, which the history of all loans, credit cards , overdraft facilities and repayment of all these debts taken by the customer is recorded. CIBIL generates a score based on all these credit information, which we say CIBIL SCORE , it is 3 digits which starts 300 from 900 .
CIBIL A It is a credit bureau or credit rating agency that maintains records of credit related activities of companies with people. These include credit cards, loans, over drafts, cash credits.
The bank will give loan to the customer whose CIBIL score is higher. unsecured loan The minimum CIBIL score 760 for bank and 700 for finance company should be Similarly, for a secured loan, the bank CIBIL score is 700 and the finance company needs 650 .
CIBIL SCORE Calculation Process:-
- Payment History: – If a customer has a good payment history and EMI on time, then the CIBIL score will be good.
- Frequently applying for loan (CIBIL enquiry):- If someone repeatedly applies for loan to the bank or finance company, then his CIBIL score decreases.
- Credit Mix Loan:- If you have both secured and unsecured loan, then this has a positive impact on CIBIL score.
- High Credit Utilization:- High credit utilization has a negative impact on the credit score.
How to improve CIBIL score ?
- your EMI Pay , don’t delay in making the payment.
- Avoid excessive use of credit cards.
- Strike a balance between secured loans like home and auto loans and unsecured loans like personal and credit cards. Too many unsecured loans are not considered good.
- Cut your expenses so that there is no need for loans and credit cards.
History of CIBIL :-
| 2000 | TransUnion CIBIL Limited (earlier Credit Information Bureau (India) Limited) was established on the basis of the recommendations of RBI Siddiqui Committee. |
| 2004 | Credit bureau services were launched in India (Consumer Bureau). |
| 2006 | Commercial Bureau Operations commenced. |
| 2007 | India’s first generic risk scoring model for banks and financial institutions, Introduced CIBIL Score |
| 2010 | The following are two new initiatives for the credit industry in India ,
CIBIL Detect: India’s First Repository for Information on High Risk Activity , CIBIL Mortgage Check: First Centralized Database on Mortgages in India. |
| 2011 | CIBIL TransUnion Score made available to individual customers , |
| 2016 | TransUnion acquires 82% stake in CIBIL and becomes TransUnion CIBIL, India’s leading credit information company , |
Credit Information Bureau (India) Limited