February 15, 2010 by akhilendra

Know your Cibil Score

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Scores are very important aspect of today’s life and today it’s CIBIL Score. Since our childhood, we all have seen the importance of scores in our life. First, in school, then competition, college and finally ratings in our annual appraisals, scores play an imperative role in our growth. Similarly, when you avail credit in any form, your payment track records are updated and monitored by a national credit agency CIBIL or Credit Information Bureau India. Banks or lending institutions share your payment history with the CIBIL and CIBIL helps them in making the decision. Based upon the payment history, CIBIL assign a score or rating to the individuals.

Cibil Score Importance-When you apply for a credit line, the lending institution checks your credit score and based upon that, makes the offer. Better credit score helps in cracking the better deal. CIBIL assign score at a scale of 100 to 999. A low score of around 100 may result in direct decline by the bank and a good score of around 800 would help applicant in bargaining a good deal like negotiating interest and processing charges. Earlier, the credit score was only open to banks and lending institutions, but now it is open to consumers also.

The credit information contains information about the borrower’s name, address, PAN, Passport number, voter’s ID and date of birth. It has record of all credit line that individual has availed like credit cards, loan etc, along with past payment history, overdue amount and other information like status of any suite or defaults. This score is regularly updated and if someone is having a bad score it doesn’t mean that it can’t be changed. In today’ world, when we have to depend a lot upon credit for various needs like credit cards, Personal loans, auto loans or Home loans, it is very important not only to maintain a good score, but also knowing own score.

The only way to maintain a good score is to pay the credit card dues or other EMIs regularly and keep all your debt under control. So, before you go for any kind of loan, make sure to refer to your credit score. Availing credit score is fairly easy and doesn’t cost much. Application form can be downloaded from CIBIL website. Fill it and send it to CIBIL with a DD of Rs 142 along with necessary documents. The CIR will be dispatched immediately after the application details are verified. You can apply for own CIBIL score and not for others.

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