CIBIL Score FAQs Answered

CIBIL is the new buzz word in the banking and financial town. You wouldn’t have given much heed to this word until you decided to get a loan or a credit card. When you first heard this word coming out of the bank’s mouth, there might have been a flurry of questions arising in your head. Questions like, What is CIBIL? Where is it from? What is CIBIL Score FAQsa CIBIL score? Why is it necessary to maintain a good CIBIL score? And the list is never ending. In this article, we answer some questions related to CIBIL and some CIBIL Score FAQs.

What is CIBIL?

CIBIL, now known as TransUnion CIBIL, is an abbreviation for Credit Information Bureau of India. CIBIL is a part of TransUnion, an American multinational group. It is a credit information company that provides and formulates report about the credit behaviour or creditworthiness of individuals and corporates. 80-90% of Indian Banks and Non Banking Financial Companies rely on CIBIL for credit information about individuals and corporates in order to provide them with lending products.

What is a CIBIL Score?

CIBIL score is a three digit number assigned by the Credit Information Bureau of India to individuals and corporations. The three digit number is a manifestation of your credit worthiness. It is like your financial report card based on which the banks will lend you loans or any other credit products. CIBIL score ranges between 300-900, where the lower end of the spectrum represents the worst and the higher end, the best.

What is a Good CIBIL Score?

CIBIL score can be any number between 300 to 900 based on credit track record. 300 is considered as the worst credit score and 900 is considered as the best credit score. An ideal score of 750 and above is considered to be a good CIBIL score. This is known as a good credit score because banks give away loans and credit card products without any intrusion.

How to Maintain a Good CIBIL Score?

Maintaining a good CIBIL score is imperative at the time when you want to raise debt a loan from a bank or NBFCs. Banks do a mandatory check on the CIBIL score when they are giving away lending products. This check is necessary for them because they don’t ask any collateral submission to avail the loan. So, the only option left with the bank to gain confidence in you is by checking your CIBIL score. Thus, maintaining a good CIBIL score will give you an edge in procuring loans and credit cards. To maintain a good credit score, all you need to know do is service you past loans and credit card dues better. Make sure you pay all your EMIs on time and clear all your credit card dues before the due date. This will put you in a good light in the eyes of CIBIL.

How Should I check My CIBIL Score?

You can check your CIBIL score on the official website of CIBIL. Checking your CIBIL score is absolutely free of cost. But you can only check your CIBIL score free of cost only once a year. If you want to check your CIBIL score more than once in a year, you will have to pay for the subscription. However, you can check your CIBIl score on the website of fin-tech companies absolutely free of cast all year long. In order to check your CIBIL score, you have to open an account on CIBIL and enter a few details like your Name, PAN Card, Date of Birth, etc. Also, CIBIL will ask you to submit some scanned documents for verification purposes.

These were some of the CIBIL Score FAQ. Hope most of your doubts about CIBIL are resolved, if not all.