Tuesday 5 January 2016

Unparallel Relevance of CIBIL Score in Modern Society

CIBIL TransUnion Score is actually a 3-digit number, which represents the entire credit history of a borrower. This score is more popularly referred to as CIBIL score and it is generated from credit records found in the CIR (Credit Information Report) CIR is actually a borrower’s extensive history of credit payment on various types of loans . The facts and figures included in the CIR are provided over a period of time by the credit institutions. However, the report does not include one’s fixed deposit details or that of savings account and financial investments.

With the changing landscape of loan and credit in India, importance of a good CIBIL score cannot be denied anymore. The score ranges between 300 and 900 and a score of 750 and above is usually considered good. Interestingly, CIBIL is the acronym for Credit Information Bureau (India) Limited and it is the country’s first CIC (Credit Information Company). Since its establishment back in August 2000, the entire landscape of credit and loan in India has changed drastically.

How to Improve CIBIL Score

Improving CIBIL score is highly feasible for every soul however, the process is lengthy, and one has to adhere to fixed norms and strategies for the purpose. CIBIL has an array of strategic partners, which include banks and credit institutions. These entities provide the relevant information to the accredited organization in a regular manner.

A good CIBIL rating proves helpful to secure loans and credit cards faster. It is as well helpful to get housing and car loans on fast track basis. As such, credit institutions process loan applications for individuals with higher credit score faster. Moreover, an impressive CIBIL score is effective to get loans at lucrative interest rates.

Actually, good CIBIL score proves to be mutually rewarding for both creditors and debtors. It helps creditors to run their business more efficiently and with lesser overheads.

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