CIBIL stands for Credit Information Bureau (India) Ltd. CIBIL is one of the premier companies which provides the credit reports and scores. CIBIL uses financial data information like loan and credit card information from multiple banks and other financial institutions in India. Then CIBIL presents all this data in the form of a report which is known as a CIBIL credit report. It is also known as a Credit Information Report (CIR).
CIBIL was incorporated in 2000 and it has expanded its presence all over the country. It is also backed by some global credit agencies and bureaus like Trans Union International and Dun and Bradstreet.
What is credit Score / CIBIL score?
CIBIL score which is also known as Credit score is a numerical expression based on credit information which represents creditworthiness. This score is based on the details related to the credit products which have / availed by the person over a certain period of time. This report also describes about how much credit the person has used and how repayment has been made. It also shows if there are any payments which have been made after due date or not been made. Along with the debt and their repayment details it also shows the other relevant details.
How Credit score is calculated?
Calculation of Credit score is based on the algorithm calculations made by CIBIL bureau. Rating of CIBIL score ranges from 300-900, and score more than 750 is considered as good. The another credit rating agency which is known with the name of Equifax makes credit rating between 1 – 999 points. At least last 6 months financial data is used for calculating CIBIL scores. CIBIL bureau feds that data into their algorithm having multiple variable with different weightages and calculates the credit scores.
There are also some other credit rating agencies like Experian and Crif Highmark and these agencies are also approved by the Reserve Bank of India for offering of credit report services to the banks and the other financial institutions.