What is CIBIL score?
CIBIL Limited manages credit files for 600 million individuals and 32 million enterprises. An American multinational corporation called TransUnion owns CIBIL India. As a result, credit scores are known as the CIBIL Transunion score in India.
The CIBIL Score, which varies from 300 to 900, is a three-digit numerical summary of your credit history. Your credit rating improves when your score approaches 900.
NOTE : You can get your CIBIL score on your phone for FREE.
What are the factors that impact a CIBIL Score?
A scoring algorithm that considers a significant number of data elements and broad credit trends creates the CIBIL Score. It is based on credit history going back 36 months. A consumer’s CIBIL Score is primarily influenced by four important variables: payment history, credit mix, inquiries, and credit usage. The most recent CIBIL Score algorithm, however, also takes into account the depth of credit (i.e., the length of your credit history starting from the opening of your oldest credit account), long-term trend of outstanding balances, credit card transaction history, ratio of actual repayment to total amount due, and new accounts opened/accounts closed.
What is a CIBIL Report?
The CIBIL Report’s credit history is used to calculate the score (also known as CIR i.e Credit Information Report). A person’s credit payment history over time, spanning loan kinds and credit institutions, is represented by their CIR. A CIR does not include information about your assets, fixed deposits, or savings.