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CIBIL Score Magnifies Credit History

Published: Apr 23rd, 2019 09:24 amBy Dr Sarika Lohana

Score Updates oh! It’s not routine cricket score updates which we all eagerly waiting for, but its credit score which represents the creditworthiness of a consumer credit. Lenders use these credit scores to determine the qualifying limit of the consumer applicable for credit finance facilities. Nowadays to cover untapped market in the developing countries, where companies are evolving in new and unconditional ways of market shift to decode consumer behaviour from cash to credit purchase options via Zero interest finance offers and Easy Private Finance options. The major attention of Non-Banking Financial Companies (NBFC) and Public & Private sector Banks lies in offering credit facilities to their consumer to leverage their purchasing power. CIBIL- Credit Information Bureau (INDIA) LTD is RBI’s regulated board that analysed and updates the score of customers availing credit finance with a unique verification number i.e. PAN- Permanent Account Number. The lenders such as banks, NBFC, private finance and government departments verify CIBIL score before financing to verify the creditworthiness of the applicant.

CIBIL Score is a 3-digit number which represents a summary of individual’s credit history and credit rating. This score ranges from 300 to 900 points, 900 points being the best score. An individual is “credit invisible” or consider “unscorable” one who has not availed any form of credit finance history, score “zero” or “-1”. Score range from 350 to 550 is alarming situation and range between 550 to 750 score is considerable, on the basis of the future promises of regularity in payments by the customer. It takes around 45 to 90 days period of time to revise and modifies credit score update on the CIBIL website after regularised payments made by the customer.

CIBIL score below 550 is considered as weak score it reflects that the customer is credit defaulter, come in the class of NPAs- Non Performing Assets as per Bank records. It is withhold situation for that defaulter customer, as there is none other option than improving the CIBIL score. Every now and then after satisfying the previous dues the customer has to wait till the CIBIL Credit Score get improved for the next creditability.
Hence, it is very essential for everyone who avails the services of credit finance may be through Banks or NBFC should be a watch dog to know his /her CIBIL Credit Scores, which is an imperative element for forthcoming credit financing need of any customer. 

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