What is the Full form of CIBIL?
The full form of CIBIL is Credit Information Bureau (India) Limited. CIBIL was founded in August 2000 and is India’s first credit information firm. The organization gathers and manages financial records of individuals as well as business organizations relating to loan and credit card payments & borrowings. CIBIL acquires this data with the assistance of its bankers and credit institutions.
CIBIL is RBI authorized and is also known as the Credit Bureau. It is covered under the 2005 Credit Information Companies Regulation Act. To find relevant information, it requires support from its associated partners, including bank members & credit institutions. Associate partners give it every month.
CIBIL credit score
A CIBIL credit score is a 3-digit number which is a representation of your credit record. It is evident in the form of details provided in your credit report. Overall this score ranges from 300 – 900.
Significance of credit score
- CIBIL plays a significant part in obtaining a loan. If individuals don’t have a CIBIL score that is acceptable, most banks will not find individuals worthy for the loan.
- When you apply for a loan, the bank reviews individuals credit score & credit history first.
- If individuals have a low credit score, the bank will assume that you have a bad credit history, and will, therefore, refuse individuals apply for the loan.
- If the credit score is strong on the contrary, the bank will easily accept individuals loan.
- The higher the score, the greater the chance of approving individuals loan.
- The CIBIL score determines your eligibility for loans. A good score on CIBIL makes individuals easily qualify for a loan.
- If your CIBIL score is good, clients can start negotiating the loan interest rate for the benefit.
- Approval of the loan will be fast and easy. Banks or lenders will give individuals, without annual fees, a preapproved loan or a credit card.
Comments