FAQ about CIBIL rating

Cibil score is one of the most important criteria used by banks to evaluate your credit proposal. It is a 3 digit score that varies from 300 and 900.

Cibil (Credit information bureau of India limited) was founded in 2000. All associated banks and NBFCs provide data to cibil regarding loan and credit card of their customers. Cibil collates data and prepare a credit information report (CIR) of borrower. This report is available to banks as well as borrowers at their website. Most of the banks utilize cibil report to analyze customer’s credit proposal.

Q1. What is Cibil rating?

Ans. Cibil is the most popular credit rating agency in India. Cibil score is the score provided on credit information report (CIR) prepared by CIBIL. It is a 3 digit score that varies from 300 to 900, it is prepared by analyzing all the past credit information regarding loans and credit cards provided by banks. This score tells us about past cibil scorerepayment behavior and future repayment expectancy for a borrower.

Q2. What is an ideal Cibil score?

Ans. There is no ideal cibil score as different financial institutions have different lending criteria. But, a higher score is always a better score when it comes to cibil. Usually, you should always strive to maintain a score of above 750 to get the best deals on your loan application.

Q3. How can I get my Cibil score?

Ans. You can get your cibil score by visiting website of cibil. You can opt for credit score rangedifferent subscription like one time, bi-annual, quarterly subscription etc to get your credit information report (CIR). Cibil will ask for your basic details like personal information, identity proofs, address information etc and provide your cibil score after authentication.

Q4. Will checking my Cibil score will have any negative impact?

Ans. It is suggested that you should check your cibil score once a year at least. By doing this, you will know your exact position for the purpose of loan. This is known as "soft check" in financial industry and enquiries by banks and NBFC are known as "hard check". These enquiries if quite frequent will create a negative impact on your profile and will be seen as too much dependency on debt.

The article on LoanKuber.com made me inform about how one can read and interpret his cibil report. This article onhttp://www.loankuber.com/content/cibil-score/faq-about-cibil-rating/proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

It is more or less a nightmare for a person to have a bad credit report.