Banks Check Your CIBIL Score Before Approving Your Loan – www.cibil.com
All of have experienced the importance of credit score in availing bank loans either for personal consumption or business purpose. When It comes to credit score, we normally refer to CIBL Score. CIBIL is one of the four Credit Bureaus in India.
The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score. All banks /NBFCs usually look at the credit score as one of the many checks they do before advancing a loan.
Many entrepreneurs are struggling to understand the reason for a low credit score. Many of them do not try to resolve the issue rather curse their fate. It is a matter of fact that the Credit Bureaus like CIBIL sometime do not update the record or upload defective details leading to lower scores.
It is widely reported that in the USA, 20% of the Credit Bureau records are defective. Many of these defects can be resolved at the Bank or Bureau level by taking up on their website. However, some of the cases require professional help to overcome the challenge.
In any case, it is desirable for anybody to visit Website of CIBIL and seeks report. Credit Bureaus offer free Credit Score and detailed report for a fee. State Bank of India offers free CIBIL credit report for anybody n their website homeloans.sbi