Today we will understand CIBIL score meaning.

A CIBIL score is a three digit number assigned to every borrower who has obtained some loans and advances from a bank or NBFC (non banking financial companies) or any financial institutions in India.

A cibil score ascertain the creditworthiness of a borrower.

A CIBIL score is the numerical expression of the CIR (credit information report) of a individual’s credit payment history across loan types and credit institutions over a period of time.

There will not be any CIBIL score ,If a person has not borrowed any money from any bank or institutions

It is very important to understand that a CIBIL score is only assigned to those people who has in the past borrrowed some loan from and banks or financial institutions.

There will be no CIBIL score number for a person who has never borrowed any loan from any banks or financial institutions.

Therfore its really important for a person to borrow some small amount from any banks and repay the installments on time on regular basis .

It will create a good credit history of repaying the debts and a good CIBIL score will be automatically assigned to the borrower.

The three digit CIBIL score is formulated by the largest credit information bureau of India called TransUnion Cibil Ltd.

The transUnion CIBIL Ltd gives a number between 300—-900 to every borrower who has obtained any loans from a Banks or financial institutions , after evaluating the repayments behaviour of the borrower.

If the borrower has consistently repaid back his loans over a longer period of time his CIBIL score will be on the higher side.

Any default and delay in the repayments off installments will adversely impact the CIBIL score and it will become on the lower side.

RBI has authorized TransUnion Cibil ltd to periodically gather information from the lender about the repayment details of the borrower.

The credit information is generally exchanged by banks to transUnion electronically periodicallly.

Now you must be wondering why this 3 digit score is so important to a bank and who gives this CIBIL score.

Banks will often check your cibil score before granting you any loans and advances.

Before offering any loan to its customer , a banker first checks his CIBIL score on CIBIL website.

It is helpful for a bank to ascertain the credit worthiness of the intending borrower and helps a banker in his decision making process.

Just to ensure themselves that they will get back their loan on time with interest .It indirectly helps in decreasing their possible NPA (non performing Assets) in the future.

Well, In India the most popular credit information agency is transuUnion cibil ltd. They are among the pioneer in the field of collecting and maintaining the details of the Credit worthiness of the borrowers.

The other three credit bureaus are Equifax , Experian and CRIF High mark.

In india the RBI has authorised four agencies for maintaining the credit information of Indian borrowers.The other three are  Equifax , Experian and CRIF High mark.

As a borrower it is always very important to maintain a good CIBIL score.

It is always important to maintain a healthy cibil score.One can keep a healthy score only by repaying sincerely one’s debt to the lender.

Your Cibil score will be automatically increase overtime to a very healthy cibil score if you are continuously paying your dues on time.So it would not matter if you check it of not.

But it is always desirable to check owns CIBIL score from time to time because there may be some error in the report and it might be showing a low score even if you had not missed any payments.So under that situation you must bring it to the notice of the credit bureau.

CIBIL SCORE check

So one should always keep an eye on the CIBIL score by checking it online regularly.

There are many ways for CIBIL score check, including directly applying to the transUnion for one’s CIBIL score with payment of fees.

But today we would like to discuss about the easiest way of getting one’s CIBIL score free check online.

There are many easiest way online to know the CIBIL score.If you type online ‘cibil score check’ ,several results will emerge on the google like the paisabazaar.com bankbazaar.com,bajajfinserv.in beside the CIBIL.com.

But i like the free CIBIL score check from the CIBIL.com as well as wishfin.

What is the healthly cibil score good range?

CIBIL score of 750 and above is always considered to be a very good cibil score range by banks and lenders.