CIBIL Score – What does it mean?

CIBIL is said to be the first Indian credit Information Company. Credit Information Bureau India Limited popularly known as CIBIL maintains credit records of each individual involved in loans and debt market. not only the individuals but the commercial entities are also a part of the records. These records are used by the credit lending companies and banks to cross check the background of the individuals.

Once you walk into the world of debt you will closely watched by the experts. Your every financial activity in credit market will be recorded under CIBIL records. If you are scared to know that you are being stalked then let me know there is nothing to worry about. CIBIL Score is more like your report card back in school. If you perform well you will get good score. CIBIL sets a score ranging from 300 to 900. If you are anywhere near 900 then you are a good debtor.

Your Credit Report is Your Financial Report Card which Grades the different aspects of Your Finance.

Your Credit Report is Your Financial Report Card which Grades the different aspects of Your Finance.

The score generally depends on your credit history. Whether you are a defaulter, how long you are maintaining credit accounts, how do you use your credits, checking credits and so on are the factors that affect your CIBIL Score. Now a lot of myths are there regarding CIBIL. Some are true some are pathetically false. Here you will get 10 general facts about CIBIL Score.

10 Facts about CIBIL Score

  1. CIBIL Score does not include your saving or investment account information. It only tells about the credit history and debt activities that you perform. However the score includes fixed deposit accounts, trading accounts and also current accounts.
  2. CIBIL will not let you know in what purpose your scores are used. For example your scores can be used in credit assessments or somewhere else. You will never know how your scores are being used.
  3. Many a people think that checking your CIBIL score may bring down the score. This myth is incorrect. Lending companies or financial institutions check your score only if you are in need of credit. If you check your score or status this does not affect your score anytime.
  4. There is another myth that many people believe that in CIBIL only bad debtors or negative scorers can be found. This isn’t true either. CIBIL maintains records of each and every individual who are involved in credit market irrespective of negative or positive image.
  5. If you are a defaulter then it will reflect in your Score but CIBIL will not publish any data regarding your name or such in public forums or any other platforms. They only send them to the companies enquiring about the individual.
  6. If you close an inactive or active credit account, it will be shown in your CIBIL report. This may lead to high score or can also back-fire your score and take it down. Whatever be the result, will be shown in the score but not the reason behind it. CIBIL does not publish any reason for closing accounts.
  7. You can only see the 3 years monthly repayment history in CIBIL Score. Prior to that you will not be able to see your activity so are the companies searching for your credit history. Monthly details of last 3 years credit can be found in CIBIL Score.
  8. CIBIL Score will not let you guide to boost up your score. Many people think that with CIBIL reports and scores they can be benefitted as they will get to know how to boost up their scores. But the fact is wrong as the score will not help you there. You need to know how to increase the score by yourself. No measure or guidance is being provided by CIBIL.
  9. CIBIL Score does not contain credit ration of the individuals. The companies and the commercial entities need to find it by themselves. These companies get only the basic credit information about the individual and rest should be founded by the company. CIBIL does not help them in this credit ration findings.
  10. CIBIL Score or CIBIL Reports cannot be edited or corrected without individual’s help. The reports will be updated with each activity the individual will perform. It could be closing an account, repayment, interest rate increase, defaulters or anything else. The CIBIL officials or anyone from CIBIL don’t have authority to correct or edit the CIBIL reports hence the CIBIL Score.