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Short Essay On Credit Information System

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CIBIL
TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000. TransUnion CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to TransUnion CIBIL by member banks and credit institutions, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications. TransUnion CIBIL was created to play a critical role in India’s financial system, helping loan providers manage their business.

History and origin
For credit grantors to gain a …show more content…

It is also used by mobile phone or insurance companies to evaluate the individual before giving phone connection and policies respectively. The government organizations also evaluate these scores while recruiting for some higher positions. The credit score provided by CIBIL is called CIBIL Trans Union score.
Who calculates or maintains the credit score?
CIBIL stands for Credit Information Bureau (India) Limited and was started in the year 2000. It basically collects the details of the individual’s payment to loans and credit cards from the banks and other financial institutions every month. It then generates the credit information report (CIR) which contains the credit score,personal information and payment history of the individual. The report is then given to the financial institutions for helping them to decide on the loan application of the individual.
Even though CIBIL score is the most popular one, there are also few other companies who calculate the credit score and they are Experian, Equifaxand Highmark who are given license in 2010 to function as credit information company.
How to track credit …show more content…

– Interest rates on credit cards will be reduced if you keep good credit score.
How To Get a 700+ CIBIL Credit Score?
If you don’t know what a CIBIL credit score is, it’s perfectly fine. But one day, you will need it, especially if you’re applying for a loan or buying a house. In my opinion, it’s better to learn about CIBIL credit scores early on so that you don’t have to worry about it later. In this article, we will talk about how to get a perfect CIBIL credit score.
To learn about CIBIL score, check out this article.
Here are my tips to improve and get a high CIBIL credit score (700+)
1. Do not keep your credit card bills unpaid every month. Pay them off in full as they are billed every month (not before they show up).
2. Buy things only for less than 20-30% of your credit limit. This is the ideal credit utilization limit, stick to it.
3. Do not get too many credit cards at the same time (unless you know them really well). 2-3 would be ideal.
4. Do not apply for a lot of loans at the same time, where they do a hard credit check. Too many applications can mean you are desperate for

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