Trans Union Credit Information Bureau (India) Limited is India’s first Credit Information Company (CIC) which was established in Aug 2000.
It is a numerical articulation in view of a level investigation of a man’s credit records, to speak to the financial soundness of a person. CIBIL score rating is principally in light of a credit report data ordinarily sourced from credit departments.
What is CIBIL score?
Banks and other credit companies such as mobile phone companies, insurance companies, and government organizations uses CIBIL score to assess the potential risk that will be faced by lending money to the client. In order to avoid risk, customers can go through service providers like CreditMantri, PaisaBazaar, IndiaLends etc to find their CIBIL score for free.
Importance of CIBIL score
CIBIL score is very much important when it comes to taking loans from bank at low interest rate. When you need a loan for example home loan or business loan the first thing the bank would do is to download the credit report and check if the CIBIL score is high or low in order to avail the loan.
If the customer has high CIBIL score by considering all the other norms then the chances of getting the loan is very high at a very low interest rate with minimal paperwork. If suppose the candidate has low CIBIL score then the chances of bank approving the loan is very less, even if they provide the loan by considering other norms the interest rate will be very high.
How to check your CIBIL score?
CIBIL score is three digit number, running from 300 to 900, utilized by banks to find out the financial soundness of the candidate and paying back the interest on time.
The steps followed to check the CIBIL score:
– You can start the procedure by documenting in a frame on CIBIL’s legitimate site.
– Enter the details such as name, address, and contact number.
– On the off chance that you need a CIBIL Transunion score and your CIR (credit data report), you have to pay an expense of Rs.550.
– Once you’re done with submitting the form and required documents and made the payment, your CIBIL score will be sent to you through mail.
You can likewise apply for your credit or CIBIL score offline by sending all your documents through mail with a demand draft of Rs. 1200 to CIBIL office in Mumbai or get it for cheaper at Rs 350/mo or Rs 999/yr from Scocre
Merits of having a good CIBIL score
The advantages that are availed after having a good CIBIL score are:
Low financing costs on Mastercard: candidates with high CIBIL score can get the loans at relatively low interest rate. The less cash you pay on interest, the more you have for everything else including reimbursing your adjust.
Exiting credit card offers: Individuals having a good CIBIL score, get exiting credit card offers from all banks. These cards have higher points of confinement, more benefits and astounding offers, deals and cashbacks.
Increasing the sanction limit: On the off chance that your CIBIL score is high, you not just get advances at a lower rate of intrigue yet additionally have odds of getting the maximum furthest reaches of credits.
Easier approval of loans: A good CIBIL score expresses that your a decent prospect to loan cash. In this manner banks attempt to give you the credit ahead of schedule time. Candidates having low CIBIL score need to undergo a lot of paperwork which is time consuming.