Know your credit score before applying for loan
Now you can get a credit score card to have an idea of whether your loan application will have the 'approved' stamp or not.
Credit Information Bureau (India) Ltd, or Cibil, which maintains a record of credit histories, now offers credit scores with detailed credit report to individuals for Rs 450. So far, Cibil and other credit bureaus had been giving credit history report to individuals without disclosing the scores.
The Cibil credit score summaries a person's credit history in the past three years and rates them on a scale of 300-900 on the basis of information received from its member credit institutions. A higher score means better chances of getting a loan.
Banks use credit ratings along with their own analysis for due diligence of loan applications. Banks may refuse to give you a loan or ask you to pay higher interest rates if your credit score is low.
"A credit report includes all the information about an individual available with Cibil. In contrast, the credit score is a three-digit number arrived at by analysing the information available in the credit report," says Harshala Chandorkar, senior vice-president, consumer relations, CIBIL.
"Knowing their credit score will help consumers with good track record to have faster access to credit on better terms and interest rates."
