WHAT IS CIBIL?

CIBIL (Credit Information Bureau of India Limited) founded in August 2000 keeps a credit score (called as Transunion Score) of all the people opting for any type of loan from any financial institution. CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders on a monthly basis. This information is then used to create Credit Information Reports (CIRs) and credit scores which are provided to lenders in order to help evaluate and approve loan applications. Credit Information Bureau (India) Limited (CIBIL) provides a credit score on a scale of 300 to 900 based on your previous credit card usage, how you maintained your bank accounts, any cheque bounces, existing loans, loan repayments and how many times you have applied for a loan or a credit card. The data from banks indicates that loan providers prefer a credit score which is greater than 700. Transunion score is a history of your credit profile, so do make sure that you manage your credit in such a manner that your score stays above 700.

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