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TransUnion CIBIL, the Credit Information Bureau of India, has eased the problem of due diligence for financial institutions. In addition, TransUnion CIBIL has credit information for over 600 million people, available in the form of credit reports. Based on the TransUnion CIBIL Score, financial institutions measure the creditworthiness and payment behavior of customers.
CIBIL score, also known as Credit Information Bureau (India) Limited score, is a three-digit number that ranges from 300 to 900. It is a measure of an individual's creditworthiness and is used by financial institutions to determine the credit risk associated with lending money to that person.
Here are some key points to help explain the meaning of CIBIL score:
A CIBIL score can range from 300 to 900, with a score of 750 or above considered to be good. A score of 600 or below is considered to be poor and may make it difficult for an individual to qualify for a loan or credit card
TransUnion CIBIL is a Credit Information Bureau operating in India. This is the first Credit Information Bureau that was established on the recommendations of the Reserve Bank of India. The other Credit Information Bureaus established subsequently are Equifax, Experian and CRIF.
Every bank/NBFC and Insurance Company is by default the member of TransUnion CIBIL and provides information about the credit profile of the customers once a month. TransUnion CIBIL has credit information of over 600 million individuals from over 32 million Companies. With the credit information, individual credit reports are compiled. The credit report comprises personal details like name, email id, contact address, PAN, employment details, loan payment history, the number of loans, type of loans, loans past due, credit utilisation limit, and a number of loans and credit card enquiries made.
TransUnion CIBIL Score is then awarded based on the individual's creditworthiness, financial capacity and repayment behaviour. The CIBIL Score TransUnion ranges from 300 to 900, wherein 300 is the lowest score, and 900 is the highest score. A CIBIL score ranging from 750 to 900 is considered a good CIBIL Score range and will spike up the chances of loan approval.
TransUnion CIBIL Score certifies your creditworthiness and repayment responsibility. It is a mandatory requirement when you approach the lender for any loan or credit card. Reviewing your CIBIL score periodically is essential to maintain a good credit score. There are certain additions that can happen to your credit report without your knowledge which may hamper your credit score. To check for the accuracy of information and detection of fraudulent transactions and identity theft, credit monitoring through TransUnion CIBIL Score review is important.
Is there a way to check free CIBIL Score?. As per RBI guidelines, all Credit Bureaus have to provide one free Credit Report in a year. So you can avail yourself of the TransUnion CIBIL Score free facility once a year. To check the CIBIL score, you will have to follow the procedure given below:
With TransUnion CIBIL Login, you can get a free Credit Report. Else, some of the lenders provide the option to check CIBIL Report and CIBIL Score for free on their official websites.
Nowadays, no lender approves a loan or credit card application without checking the CIBIL Score and TransUnion CIBIL Report. How does TransUnion CIBIL calculate the Credit Score? Read further to understand what goes into the calculation of the TransUnion CIBIL Score.
All Credit Bureaus have their proprietary algorithm to calculate the Credit Score. TransUnion CIBIL also calculates the CIBIL score through a special mathematical algorithm and allocates a score which is a three-digit number ranging from 300 to 900. The closer the score is to 900, the better are the chances of loan approval. The higher the score, the better are the deals. This score is based on the credit information TransUnion CIBIL receives from various financial institutions periodically, i.e., once in 30 days. The score is mainly dependant on the payment history, the duration of credit history, the credit mix, credit utilisation, and credit enquiries. Every attribute gets a percentage of the score as given below:
Past Performances: 30%
Credit Exposure: 25%
Type of Credit and Duration of Credit: 25%
Others: 20%
Past Performance: Your past commitment towards debt obligation carries the maximum weight. Delinquencies/default will have a negative impact on the score.
Credit Exposure: The number of loans and the overall outstanding liability gets a weightage of 25%.
Type of Credit and Duration of Credit: The duration of your credit history and the credit mix gets a weightage of 25%. Whether there is a good balance between secured and unsecured loans or majorly unsecured loans plays a very important role in allotting the score. A good credit mix will have a good impact.
Others: Other factors like credit utilisation, number of new loans added in the near past, number of credit card and loan enquiries carry a weightage of 20%.
The Credit Score not only impacts the credit decision but also on the terms and conditions that are associated with the loan, like the interest on the loan, quantum of loan and the loan tenure. The higher the score, the more confidence the lender will have in your repayment capacity and financial worth. So it is of prime importance to maintain a healthy score if you want to reap the benefits of a good deal.
Credit Score by TransUnion mainly depicts the following:
All these aspects are given a weightage, and the Credit Score is drawn. A score between 750 to 900 is the ideal score to have and will fetch you a loan with better deals.
You can contact TransUnion on the following telephone numbers:
91-22-6140 4300
91-22-6638 4600
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
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