What is the full form of CIBIL?
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What is the full form of CIBIL?
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The full form of CIBIL is Credit Information Bureau (India) Limited. CIBIL was founded in August 2000. The organization is involved in maintaining the data of all credit activities of the organization as well as individual credit cards and loans. CIBIL is India’s first credit information organization.
CIBIL is authorized by RBI and it comes under the 2005 Credit Information Companies Regulation Act.
Credit score- A CIBIL credit score ranges from 300-900, it is a 3-digit number that represents your credit record. This credit score generated with the help of the credit history of the individual. Bank prefer a candidate whose credit score is 750 and more.
Credit report of individual-Credit report contains the credit data that CIBIL gets from different financial organizations. This report contains data about a person's set of experiences of getting and reimbursement schedule, including defaults and deferrals. The main part of the report is financial assessment, a person's personal data, work subtleties, contact data, and record subtleties.
Credit report for organzation- Credit reports of organizations contain all the credit history of the organization, It includes potential lenders, existing credit, pending lawsuits, and outstanding amount.
Importance of credit score
1. It provides you with a total summary of your past and present transactions and gives clarity about where you need to focus on to improve your CIBIL
2. Good credit score makes you Eligible for Loans, banks prefer candidates whose score is 750 or more
3. You will get the loan at a minimum interest rate
4. You will get a loan for a longer duration
5. Quicker approval on credit applications
6.Minimun loan processing fees and other charges
7. Cards with better benefits and rewards
8. Pre-approved loan
How CIBIl score made up?
These are the four-factor that make -up your CIBIL score:
1. Payment history-30%
2. Credit exposure-25%
3. Credit type & duration-25%
4. Other factors-20%
