TransUnion CIBIL Limited is India’s first Credit Information Company, also commonly referred as a Credit Bureau. We collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards. These records are submitted to us by banks and other lenders on a monthly basis; using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications. A Credit Bureau is licensed by the RBI and governed by the Credit Information Companies (Regulation) Act of 2005.
Based on this credit history, a 'CreditScore' is generated. The CIBIL Score is a 3-digit number ranging from 300-900.The score is derived using the credit history found in the CIR (Credit Information Report). A CIR is an individual's credit payment history across loan types and credit institutions over a period of time.The closer your score is to 900, the stronger your credit profile. A CreditScore plays a critical role in the loan and credit card approval process
Why is it Important ?
The CIBIL Score plays a critical role in the loan application process. After an applicant fills out the application form and hands it over to the lender, the lender first checks the credit score and credit report of the applicant. If the credit score is low, the lender may not even consider the application further and reject it at that point. If the credit score is high, the lender will look into the application and consider other details to determine if the applicant is credit-worthy. The credit score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved. The decision to lend is solely dependent on the lender and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not.
What major factors affect my credit score?
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