CIBIL is one of the primary agencies that are responsible for calculating the credit scores of Indian citizens. CIBIL scores help people to see how their creditworthiness, or ability to get approved for loans and other types of credit, stacks up. That includes the individual’s credit score, their credit history, and other information that can be found in the report. CIBIL full form is Credit Information Bureau India Limited, and it is backed by TransUnion International. To prepare the credit report and score, CIBIL contacts multiple financial institutions and gathers data relating to customers’ financial behavior. Further, it processes these data and, using its proprietary algorithm, calculates credit score, which is updated to the CIBIL score app and websites.
CIBIL Full Form, its Score, and Meaning
Your CIBIL credit score can vary from 300 to 900, with 300 as the lowest score available and 900 signifying the highest. This score represents your creditworthiness, and lenders mostly welcome borrowers with a high credit value. This happens because a person with a better CIBIL score has a solid credit history and a history of timely repayment.
The following data provides detailed information about different CIBIL score range that you can check using the CIBIL score app:
|NH or NA||No credit history||This means that a person has never taken a loan from any online lender or financial institution.|
|300-549||Poor||Borrowers with this score are considered defaulters. Banks avoid approving their loans because there is a high chance that they may not pay the debt on time.|
|550-649||Fair||This score range signifies that the borrower was irregular with paying a debt. Although some lenders approve loan applications with this score, the interest rates are generally higher.|
|650-749||Good||Getting loan approval is likely for borrowers with this score as it demonstrates their timely EMI payment behaviour. However, they may not get the best interest rate.|
|750-900||Excellent||Borrowers under this score are welcomed by every lender as there is negligible chances of default or late EMI payments. Additionally, they are able to negotiate the interest rate and get the best deals.|
CIBIL Full Form and its Importance
Having a CIBIL score is important to start your credit journey. Moreover, if it lies in between the 750-900 range, you can get approval for a huge loan amount. Every time you apply for a loan, lenders use CIBIL score app or websites to determine your score. Accordingly, they make the decision to approve or reject the application.
Some benefits of having a high credit score are:
- Low-interest rates for loan repayment.
- Better repayment options, including flexible tenure.
- Approval of higher loan amounts.
- Quick loan approval.
CIBIL Full Form and Ways to Check your Score
There are various ways to check your CIBIL score for free. These include the following:
Here you need to visit the official website of CIBIL and log in to your account using your personal credentials. You can also create an account by providing your name, email ID, contact number, and password.
Once you complete the login process, you need to fill in your ID number and other information like your DOB, pin code, etc. Following this, an OTP is sent to your mobile number. When you enter the OTP in your CIBIL account, the resulting page displays information relating to your credit score.
This is a trusted third-party website that provides detailed information about your credit score. Here you need to fill in your PAN number, name, gender, DOB, email ID, address, and mobile number after clicking the CIBIL score option. Once you submit your details, you can access your credit score.
Offline CIBIL Score Check
Another method to check the CIBIL score includes downloading the credit score request form to print and fill it out manually. Here you need to attach a xerox copy of ID proof and a demand draft drawn in favor of TransUnion CIBIL. Further, you can post or courier it to TransUnioun’s Mumbai office or scan and email it to email@example.com to get your credit score.
Before you start applying for a loan, it is important to understand your credit score and know the chances of getting approval. Furthermore, you need to choose the most convenient option to check the CIBIL score, as there are multiple methods for this. If it is above 750, you must make an effort to negotiate the interest rate and get the most affordable term.
This is considered the most convenient way to check the CIBIL score. You only need to download the Wishfin Cibil Score App from the Play Store, fill in your personal details and get the credit score.