CIBIL is a one of the four rating agencies that provides credit rating for individuals in India. The CIBIL score is usually a number ranging from 300 to 900 in most cases but not always. A higher CIBIL rating is indicative of responsible borrowing behavior and a low likelihood of default while lower score indicates the opposite. Generally loans are sanctioned to those who have a score 700 or above. Sometimes the score can be NA or NH and sometimes even 0 or -1 (minus 1). In the following discussion we understand does 0 or NA mean for the borrower.Learn more
Mr. Arun Gupta, like any dotting parent had made several plans for his daughter’s marriage. His dreams were shattered the day his loan application was rejected. It broke his heart when on the same day he found that his younger brother and another colleague had got a loan from the same bank. What was it that was hurting his credit aspirations? Something on his report may be.Learn more
Since the inception of credit bureaus in India in the year 2000, the awareness and use of bureau data is now on the rise. While a large chunk of the population continues to be unaware of how credit bureaus work and what credit information reports and scores mean to each of us at an individual level, we as a country are slowly but surely getting there.Learn more
A good credit score is a must for a loan, most of us might be aware of this fact. Often in our earlier posts we gave also discussed that how a good CIBIL score in future could be a pre-requisite to getting jobs in the higher management cadres or in some financial domain companies but now the future is here! It is no more something that will happen a few years down the line; SBI has put it on the fore front by making it a prerequisite for getting a job with them.Learn more
The person who seeks to draw credit in future for building up a home or buying a car, CIBIL score is a very prized possession. They ought to take steps that help build credit rating. However at times, unforeseen events such as an EMI cheque bounce or outstanding credit bill, or default by a co-applicant, misreporting in CIR as 'settled account' and many such events come as real shockers of life. You have no choice but to access the damage and begin the mending work. Here in this post, we will take up how cheque bounce ruins your CIBIL rating.Learn more
Starting a business and running it requires a lot of conviction, risk appetite and of course a lot of preparation. Some part of the preparation is devoted to getting the finances in place too. While some contribution from one’s own kitty is a must, there are lots of institutional lenders that are willing to lend for small businesses provided the prospective entrepreneur or in case of an already existing business the owner complies with the requirements set by the lender. However the borrower must be careful and avoid the following mistakes when planning to take a small business loan:Learn more
By the virtue of being the first credit bureau in India, the credit scores colloquially are called CIBIL Score. The score given by any credit bureau is called credit score. There are four bureaus in India viz. Credit Information Bureau India Ltd (CIBIL), Equifax, Experian and Crif Highmark and all of them give out credit scores.
The bureaus in India rate an individual on a scale of 300 to 900. A credit score of 750 and above is deemed to be good and individuals in this score band will have faster access to funding. But a person with low credit score still may be able to get loans since the underwriting is based on various factors.
Your credit score shall not only impact the approval of loan that you apply, but also has the potential to influence the rate of interest beign charged. A lower rate of interest will result into huge savings. Therefore, it is highly important to be aware of the credit score.
Your credit report has primarily three sections. Personal information, details on all the loans and credit facilities that you would have taken and enquiries from lenders. Each of this broad information is critical to your access to credit and hence need to be looked at with care.
The credit bureaus assign credit score to an individual based on complex algorithms. Broadly, there are five factors that impact your credit score. They are:
One of the major reasons why one should check the credit reports regularly is a high error rate. As per a unique survey, one of four reports has errors. These errors can lead to severely impacting the credit score and diminishing the chances of access to loans at the time of need. To know more about the reasons why one should check score regularly read more from our blogs.
Unlike developed economies, where one has access to free credit score once in a year, people have to pay for the same in India. We at freescoreindia have resolved to extend free credit score for two reasons, first to bridge the disparity on availablity of free credit score and second to educate and spread awareness on this important aspect of every one’s financial life.
You can withdraw your credit report from any of the credit bureaus as many times as possible. This will not have any bearing on your credit score. However, the enquiries made by lenders can impact the credit score.