Cibil rating is one of the most important criteria used by banks and financial institutions to evaluate credit applications of the borrowers. Question must have come in your mind that what is cibil score? It is provided by CIBIL ( Credit information bureau of India limited) which was founded in 2000. Let us see some common FAQs associated with cibil score–
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 repayment 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 web for different 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.
Q5. What are the things mentioned on credit information report (CIR)?
Ans. Your credit information report would mention your cibil score at the top. This score will vary from 300 and 900. Apart from this, your cibil report would also mention your information on personal, contact, employment, account and past enquiries etc. Your account information would mention all your previous credit details with important information like amount sanctioned, current balance, tenure, repayment track record etc.