CIBIL score or credit score is the scorecard that reflects your transaction history or financial history. CIBIL score is one of the primary factors that determine your capability to apply for a loan. It can be a personal loan, a home loan, a business loan or any other loan, where credit score is considered to be one of the main factors for loan approval. It also helps to avail a loan with the lower interest rate.
So, you need to have some basic knowledge about the CIBIL score. Some of the common and uncommon facts related to credit score are:
It is represented by a 3-digit number, generated by the credit bureau or TransUnion CIBIL. It is calculated on the basis of the past credit information of a person. CIBIL ranges between 300 and 900 and higher the score is, the easier it is to avail all types of credit from lenders.
You must know that:
1) CIBIL score and CIBIL rank are not the same thing. If you are an individual, you will get CIBIL score and if you are a company, you will get CIBIL rank.
2) CIBIL score does not reflect your savings or investment. It only shows your ongoing or previous transaction and credit activities.
3) CIBIL score differs in different bureaus such as Experian, CRIF High Mark, and Equifax, so CIBIL score generated by the TransUnion authority is considered valid.
To know about the other factors, read: 5 Interesting Facts on CIBIL Score That You Probably Didn't Know About
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