When we apply for a loan or credit card, banks check our CIBIL score. So, if we should know the ‘Full form of CIBIL in the banking industry. Let’s know what is the long form of CIBIL and 5 most important facts about the CIBIL score.
Table of Contents
Full form of CIBIL in banking:
Credit Information Bureau India Limited
#1 What is CIBIL Score?
The long form of CIBIL is ‘Credit Information Bureau India Limited. And Score is a 3-digit parameter of consumers’ credit capacity. Banks check the credit worthiness of an individual before offering a loan.
TransUnion CIBIL maintains records of 600 million individuals and 32 million businesses. A bank, before approving, personal loans, house loans, car loans, Etc. or credit cards, check customers’ CIBIL score.
It is an assessment of whether the applicant is a safe customer or a risky customer.
#2 What is on CIBIL score based on?
CIBIL score ranges from 300 to 900.
CIBIL scores between 300 and 699 are considered poor credit worthiness
Scores between 700 and 799 are considered moderate credit worthiness
CIBIL scores between 800 and 900 are considered the best credit worthiness.
So, those who have CIBIL scores between 800 and 900 will get their loan application or Credit card application approved instantly and at cheaper interest rates.
CIBIL Score is based on 4 major factors
- Past loan repayment history
- High credit Utilization
- Low Credit Utilization
- Multiple Enquiries
- Credit Mix
How do these above 5 factors influence your credit score? Read ahead
#3 How to check your CIBIL score free?
you can check your CIBIL score for free in 5 ways
- Visit Paisabazar’s official website and check your PAN card’s CIBIL score for free
- You can also check from Creditmantri’s official website.
- Visit the official website of CIBIL Credit Information > Sign up. And check your score
- Visit BankBazar’s official website and check your free score
- Bajaj Finserv Free CIBIL score check
Visit any one of the above, and fill in all the required information. Get your credit score.
#4 How to improve your CIBIL score?
If you are a secured or unsecured loan seeker, you must try to improve your CIBIL score. you can do it in simple 4 ways.
- Repay your loan or credit card EMIs on time. Don’t make it late so that you have to incur fines.
- If the credit limit of your credit card is 1 Lakh, try to utilize the credit limit below 50%.
- Don’t make multiple loan inquiries on different sites
- Diversification of loans improves your credit score. Example: you took a home loan and repaid it on time. you have a credit card. you had a personal loan, Etc.
- You can apply for a loan via Google Pay.
Your credit history is only responsible to improve your CIBIL score. From whichever bank, you take loans, it will share how you repay the EMIs with CIBIL, so be careful about repayment.
#5 More important facts about CIBIL score
750+ is a decent score. A good or excellent credit score means faster approval and a cheaper rate of interest. A lower score means delayed approvals and even rejection of loans.
Final Lines: Full form of CIBIL in banking
Those who do not have any loan history in the past, will not have any credit score. To generate it, they should take a loan or use a credit card so that the first credit report begins.
Banks check the C score of a customer before offering a loan.
CIBIL is a 3-digit score of an individual or a company that indicates credit worthiness.
It is an assessment of whether the customer payback the loan
All banks and financial institutions share their credit data with CIBIL.
What is your CIBIL score? comment below.
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