Home Free Cibil Score Interesting facts on CIBIL score that you should know

Interesting facts on CIBIL score that you should know

10 min read
Facts on CIBIL Score

A great deal has been composed about CIBIL score. However, there are a couple of facts that very few individuals know. Learning about your CIBIL score will enable you to understand it better, which in future will enable you to enhance and maintain it.

Knowledge about CIBIL score is important not only for the people who have credit histories, but also it is important as well for the one who has not even applied for a credit card or a loan yet. A CIBIL score is a 3-digit number that is produced by TransUnion CIBIL based on past credit data of a person. Generally, it ranges between 300 and 900. If you have a greater credit score, then it will become easy to get loans from lenders.

Here are few interesting facts about credit score that you probably don’t know.

  1. CIBIL score has nothing to do with speculation account data.
    Your CIBIL score is computed based on your past and progressing credit exercises. Indeed, even your CIBIL credit information report incorporates the outline of your past and continuous credit accounts and related credit activities.
    It does exclude the information about other account details such as savings accounts, current accounts, trading accounts etc.
  2. CIBIL does not alter or erase data from your credit report directly
    CIBIL creates a credit report based on the credit information that they get from different credit sources, for example, banks and NBFCs. They don’t have the permission to erase or alter your credit data specifically. They can refresh your credit report yet only when the changes are approved and provided by the concerned credit source.
  3. Having no credit history does not mean you will have an amazing CIBIL score.
    It is a typically misguided judgment that a person with no credit history will have an amazing CIBIL score. Whatever, In general rule, a person who has never had a credit card or taken any loans be it a personal loan or car loan can never get their credit report or credit score from CIBIL. This remains constant for other credit agency too why because the fact that the agencies did not get your credit information from banks to create credit report calculate the credit score.
  4. CIBIL score does not generally imply no loan.
    “Low CIBIL score implies no loan” isn’t applicable in all cases. Every bank has different credit score cut-offs according to various sorts of loans. Apart from this, the low CIBIL score may get you rejections from banks, however, it doesn’t imply that you won’t be given loan at all. Indeed, even with a low CIBIL score, there is a likelihood that you will get a loan but at a higher rate of interest.
  5. You’re entitled to free credit report from CIBIL.
    According to RBI’s guidelines, all credit departments in India, including TransUnion CIBIL should give a full free credit report once in a year to all people whose credit data they hold. Hence, you’re entitled to a credit report from CIBIL once every year.
  6. Applying for different credit cards frequently brings down your CIBIL score regardless of whether you repay the loan amount on time.
    When you apply for a loan or a credit card, banks make many inquiries such as ask for your credit report from credit agencies to check your creditworthiness. Hard inquiries are bad for your credit assessment. In this manner, applying for different credit cards increases hard inquiries in your name, and thus causes your CIBIL score to drop by a few points even if you repay loan amount on time.
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