Fast Loans & Lucrative Interest Rates with Good CIBIL Scores

Credit Information Bureau (India) Limited or CIBIL is India’s first Credit Information Company (CIC), which was set up in August 2000. With the advent of this statutory organization the landscape of India’s credit and borrow has been thoroughly redefined in the recent times. CIBIL has numerous strategic partners, including banks and other credit institutions, from which it collects credit history of borrowers on a monthly basis. It uses the information that is provided to compute CIBIL score of borrowers.

The credit information company is licensed to execute its operation by the RBI (Reserve Bank of India). The organization is governed by the Credit Information Companies Regulation Act, 2005. Information that CIBIL collects categorically revolves around loans and credit cards. A good CIBIL rating proves helpful in ways more than one. As such, it provides mutual benefits to both borrowers as well as creditors.

However, before getting into that it is crucial to inform that there are a number of dedicated online portals that categorically provide information on how to improve CIBIL rating. As such, improving the CIBIL rating is possible for anyone but the process turns out to be time-consuming. If one strictly adheres to the norms and conditions, improvement of the credit rating becomes only a matter of time.

A CIBIL score is a three-digit numeric expression that ranges between 300 and 900. A score of 750 and above is considered to be good for any individual. Credit rating computed by the premier organization is retrieved by credit organizations while assessing loan applications from borrowers. In other words, effort made by CIBIL helps credit organizations to run their business in more organized and efficient way. On the other hand, good credit rating provided by CIBIL helps borrowers to seek loans faster. It also helps them availing nominal interest charges on loans and credit cards.

Greater Bargaining Power in Dealing with Lenders with Good CIBIL Score

The world of debt and loan in India has thoroughly been changed since August 2000, when CIBIL came into existence. As such, CIBIL is the acronym for Credit Information Bureau (India) Limited and it is the first credit information agency in the country. The organization is licensed by none else but the Reserve Bank of India (RBI) – the country’s paramount banking institution. CIBIL collects and maintains credit records of both individuals and commercial organizations, which it accesses from various lending agencies. The information it deals with includes borrowing and payments relevant to loans and credit cards. The accredited body is governed by the Credit Information Companies Regulation Act, 2005.

Importance of CIBIL rating in contemporary India requires no mentioning. A good CIBIL score helps one to save money as well as makes life much easier on financial aspect. As CIBIL scores can be improved, there are lots of reasons for which people may want to make it better. To put it in other way, a good CIBIL rating provides innumerable benefits.

As such, there are lots of dedicated online portals that categorically provide useful information on how to improve one’s CIBIL score. The range of websites furnishes all relevant information on the specific aspect. Thanks to the concerted effort of all these players, consciousness among masses about good CIBIL rating is steadily rising.

A good CIBIL rating helps people availing lower interest rates on both loans and credit cards. While borrowing money on loan, interest rate is one of the costs borrowers pay. Lower interest rates prove helpful to save money. Impressive CIBIL score also helps folks to get their loan and credit card applications approved faster and with greater convenience. Even landlords appreciate tenants with better CIBIL scores while renting out their real estate properties. To cut a long story short, it will be more appropriate saying, good CIBIL scores equip people with better negotiating power while dealing with lenders and creditors.

Mutual Benefits of CIBIL Score for Both Borrowers and Lenders

CIBIL score is a three-digit numeric expression that provides entire credit history of an individual. The expression ranges between 300 and 900 and a score of 750 and above is considered good. As such, this CIBIL score proves to be equally beneficial for both lenders and borrowers. The score acts as a tool and provides crucial help to both the entities to trade with each other. Thankfully, Indian masses are becoming increasingly conscious about it, which is an excellent implication for the nation’s economic revival.

Benefits of CIBIL score for lenders

While hiring an employee there is a custom of asking the individual to furnish some references. A reference, from a third-party is such circumstances, does not guarantee about the future but it definitely establishes a good track record and a sound history of the candidate.

Somewhat similar to the analogy mentioned above, lenders retrieve the CIBIL rating of a loan applicant to assess the credit repayment history of the individual.

Different loans involve different degrees of risk for lenders. The logic behind it is simple yet sensible. People with an impressive repayment history are less likely to default in course of future in comparison to folks with bad repayment history.

Thankfully, a bad credit rating can be bettered by following certain norms and adhering to rules and conditions. There are many exclusive online portals that provide categorized information about how to improve CIBIL score.

Benefits for borrowers

CIBIL score or rating is simultaneously helpful for loan seekers too. An impressive CIBIL score provides a borrower with many advantages. It helps

• One to seek loans faster as loan applications for these individuals are processed faster
• Almost instant approval of mortgages
• Avail lower interest rates both on loans and credit cards
• Gain fast approval of housing loans at most reasonable interest rates

Thus, banks and credit institutions emphasize on good credit rating of borrowers for obvious reasons.

Face the Probable Reality with Positive CIBIL Score

Circumstances and pre-conditions of settling with the desirable loans got changed with time. Rather, it got improved and even more apt, potentially. With the ideas and terms included in India’s first credit bureau CIBIL (Credit Information Bureau India Limited), authenticate loan settlement has been made easy. Today, every sort of banks and financial institutions goes through a thorough check of the credit record that CIBIL provides. Henceforth, the corrective decision on the probable loan amount and interest to the term for the amount gets decided upon. In this context, it has got essential for the borrower to maintain a positive CIBIL score to avail loan at the time of vital need.

Every minute details of the earlier loan or credit history of a borrower, that an authenticate credit score beholds, has the power to ascertain the correct amount required by the borrower. Even the symbolical decisions about the ability of the debtors to re-pay their debt amount can be manifested with it. As a result of which, the creditors gets to filter out all the negative borrowers. In a way, a healthy way of monetary deals gets possible by both the end. Falling in between the point of 300-900, a score of 700 and above is considered to be productive and positive. No wonder, without any wastage of time, giving crucial most importance in this segment is a must for any matured individual.

After going through such a vivid discussion a question obviously hold a significant in mind. It is the vital query about how to improve CIBIL rating. In respect of this, it needs to be mentioned that such scoring and rating pattern are authentically done with the help of technologically updated algorithm. Hence, occurrence of apt result is evidential. Thus, to start maintaining the CIBIL rating from the initial stage comes first. Unfortunately, if such facets have not been considered at an initial stage, needs to look after the payment process of already occupied loans and credits gets obvious. Followed with it is the essentiality of maintaining good credits mix, paying all the dues in time and that too in full. One also needs to stop seeking for the amount as credit, once rejected by any financial institution. In this context, to seek guiding and strategic assistance from those enabled with providing such service solution is an apt idea available.

Additional Information Contained in CIBIL Report

To put it is short, a CIBIL report reflects one’s financial credibility. As such, the report does provide an array of relevant information as well. Unfortunately, majority of folks are considerably unaware of the additional information that the report provides. Instead of folding away the score sheet, if one sits down with it for some time, one is bound to unearth a lot of relevant information much conveniently.

In the first section of the score sheet is the CIBIL trans-union score. This score ranges between 300 and 900. Lenders check this score before granting loan to an individual. The higher the score the better is the chance for the individual to get a loan application approved. Thankfully, there are effective measures to improve one’s CIBIL rating.

This particular section also informs about the percentage of loan applicants belonging to different score grades whose loans got approved last year. However, instead of a numeric value, a score sheet may reveal NA or NH too. Though this happens in exceptional cases and the alphabetic strings imply absence of credit history or fresh appearance of an individual to the credit system. On the other hand, implications like NA and NH can also appear in case when there is not a single credit activity in the last couple of years.

There are many robust online portals available to check CIBIL score free. Contrastingly, the score sheet contains substantial volume of an individual’s personal information as well. As such, this set of information - like a debtor’s name, date of birth, passport details, driving license details and voter I-card details - is provided to the creditor by individuals themselves. However, if there is ‘e’ listed with any personal information, it indicates that the particular information has come from the lender and not the debtor.

CIBIL score sheet also contains contact information – like postal address, phone number, and email-id. The piece of document also holds one’s employment information like earning and employment details at the time of applying for the loan.