CIBIL Score: Everything you need to know!
The Credit Information Bureau (India) Ltd, popularly known as CIBIL is a credit agency that offers CIBIL score and CIBIL report. Incorporated in 2000, CIBIL is authorised by the Reserve Bank of India (RBI). What is a CIBIL score? A CIBIL score is generated by the credit bureau after considering an individual’s detailed credit information. It is a three-digit number between 300-900, 900 being the highest, that represents an individual’s creditworthiness. A higher CIBIL score suggests good credit history and responsible repayment behaviour. Quick loan approvals, low interest rate credit cards, home loans and car loans, approval for higher credit limits are some of the advantages of a healthy credit score. How is a CIBIL score calculated? Credit bureaus calculate credit scores by using their own algorithms. Each bureau calculates credit score in a different way. CIBIL scores are calculated on the basis of an individual’s historical financial data of at least 6 months...