What is CIBIL Score?
CIBIL TransUnion Score is a set of points awarded to all individuals or businesses regarding their credit history. CIBIL or Credit Information Bureau of India Limited is a Credit Information Company that is primarily involved in collecting and maintaining data related to all the borrowers of banks. It maintains a consolidated database of all the borrowers and after analyzing their credit record awards a score which indicates delays or loan defaults.
What’s great about the CIBIL Score?
All the banks make an assessment of the CIBIL TransUnion score to know the credit record of the borrower, so a good CIBIL TransUnion score always improves the chances of your loan approval. When the prospective borrower has high scores the bank sees them as less risky investments and hence having a higher score can get you a loan at even lower interest rates.
What’s an Ideal CIBIL Score?
While the general Credit score ranges from 300-900, 300 being the lower end and 900 being the best. Many banks take a TransUnion score of 750+ as a minimum for approval.