In this article, we will be talking about CIBIL score, it’s features , and how to maintain perfect CIBIL score.
Before going ahead with features and standard, I would like you to understand about CIBIL SCORE and its scope.
The first time CIBIL was introduced with a credit scoring module in India was in 2007. In 2011, the organisation remodeled and also started providing credit scores to individual customers as well.
In the most recent update, TransUnion acquired 825 stakes in CIBIL in 2016 and the name was updated to TransUnion CIBIL.
What’s a CIBIL SCORE?
It’s a government approved credit rating that is given to every citizen of respective country that allows you to maintain certain score to taken loans/overdraft from bank. It basically shows a loyalty score of a person toward the bank. The CIBIL is stated to be the first and also the most trusted credit rating agency in India. Its scoring technique is trusted and approved by most banks and other financial institution as the accuracy level of CIBIL is said to be better than other credit agencies operating in India. Some of the functional of the agency has also been rated and approved by the government. The customer service and grievance redressal department of CIBIL is customer-friendly and also very prompt in responding back with quick updation/answers of missed information and customer’s questions. Amid to these features, the CIBIL agency has earned the reputation of being the most trusted in the industry and also the most prolific credible credit bureau of the country.
The features and customer service provided by CIBIL has helped banks and NBFCs check an applicant’s CIBIL score when an applicant applies for a loan without a second thought on the whole system.
Advantages of CIBIL Score –
- Easy and Fast Processed Credit From Lenders
- Low Interest based loans from Banks with less/no queries.
- Amazing Credit Card Offers and High Approval Limits on Loans. You can also check out Best Credit Card In India
- Negotiation Authority with bank and lenders on the amount and interest rate.
- The last one would be easy approval for rented properties.
Why Does CIBIL Matter To Anyone Living in India?
- Easy and Fast Approval of Credits.
- Rate of Interest and Negotiation opportunity.
- Types of Different Credits Offered.
3 things that you would need to do to maintain proper Credit Rating Score on CIBIL –
1. Pay every dime spent through credit card and try to keep your records clean through the same by not delaying any payment /charges to credit card issuer bank. Delay in payment or nonpayment can severely affect your CIBIL Score. Also, try to use oldest credit card possible to keep the track record clean and flowing.
2. One of the most important thing that an individual must make sure is that any errors in his/her credit report or rating issued by agency can be appealed by the individual on the official CIBIL website . There’s one thing that you need to take care of i.e. appeal against the rating only if you have a valid point of disagreement. Everyone is a human and Errors can happen and lenders also could make some type of typical data entry errors or even software’s are not immune from errors and they do so sometime.
3. The last but not the least point one needs to note is that Just in case an individual has a bad CIBIL score or a poor rating, then getting a secured credit/debit card from top/leading banks against a fixed deposit is the way to go. Leading banks such as Axis Bank, ICICI Bank, Kotak Mahindra Bank, SBI, etc offer a secured credit card against a fixed deposit of nominal amount. When you repay your balances on time, the CIBIL score soars high.
In this article, we have talked about CIBIL Score, features of CIBIL score, and measures to keep standard credit rating. Thank you for reading this article and let us know if we have missed out on anything via comments section.
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