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 the 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.
CIBIL sets a score ranging from 300 to 900. If you are anywhere near 900 then you are a good debtor. 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.
- here 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 the credit market irrespective of negative or positive image.
- 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.
- 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.
- 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.
- 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.
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