Mumbai: A CIBIL score is a person’s credit statement of account. In simple terms, it is a 3-digit numeric summary of your credit history, rating, and report. It ranges from 300 to 900. A CIBIL score over 700 is considered good, while below 300 is categorized as poor. The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report).
It is given by the Credit Information Bureau (India) Limited (CIBIL). The agency has been licensed by the Reserve Bank of India.
One can purchase a CIBIL score and report via the official website of cibil.com. You have to choose a subscription pack among the options available. CIBIL score is available for the subscriptions above Rs 550 pack per month.
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The report, along with the CIBIL score will contain full details of your credit history across various lenders and products such as home loans, automobile loans, credit cards, overdraft facilities, and more. A CIR does not contain information on your savings, investments, and fixed deposits.
An important factor in the loan application procedure is the CIBIL score. The lender first looks at the applicant’s CIBIL score and reports when they approach a bank or other financial institution for a loan. The bank could not even give the application another look if the CIBIL score was poor. The lender will review the application and take into account additional information to assess the applicant’s creditworthiness if the CIBIL score is high.
A higher CIBIL score increases your chances of having your loan reviewed and approved because it serves as the lender’s first impression.
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