Let us understand the CREDIT SCORE !

In the world of finance, credit plays an important role in meeting our wishes. Be it the dream of owning a big car or a house . But getting loans easily is not true anymore. Lenders no more look at your earning capacity alone but also factor in your past repayment track record in the form of a credit score before making any kind of decision. In such a scenario associating one's name with a bad credit score may prove to be disastrous.

Are you planning a loan to buy a house of your dreams or replace your old car with a new sedan? These days it is a precursor if you are planning on a loan in the near future unless you want to be shocked with an end moment rejection. Credit score takes into account the credit history of the individual and predicts his willingness to repay the loan on time. Banks and lenders evaluate customers based on their ability to pay and their willingness to pay. Ability is your pay cheque, while willingness is your credit report and score. A higher score implies better chances of getting credit from the lenders.

Other than CIBIL,there are other credit bureaus also who provide credit scores. Of now almost all credit bureaus provide score ranging from 300 to 900. 
Higher the score, the better it is. Though this is definitely true, it's up to individual lenders to decide their acceptable level of risk. Depending on their risk appetite, they decide their credit score cut-off for accepting a customer's loan application. Also, what may be considered as a bad credit by one lender may be perfectly acceptable to another. For instance, a loan approval by one lender, might require the minimum score to be 750. Another lender might require 700 or lower. Therefore, if one lender does not accept your application on the basis of your credit score it is advisable to check with another one who might accept it. However, remember, lenders offering loans at lower credit scores, generally offer loans at a higher rate of interest. Hence a lower credit score may still get you a loan but it could work out to be a costly affair.

At present, the lenders report the credit history of their customers to all the four credit bureaus but they access only the Cibil report to make the decision. You must be wondering why? Cibil was launched in 2004 and has credit data on individuals from then on, while the others started operations in 2010 and do not have that advantage. If your credit score is high across bureau, it will act as a double confirmation that you are a disciplined and a good customer and therefore worthy of a loan at an attractive rate of interest. The good news is that you can raise a dispute resolution with CIBIL in case you come across any discrepancy in the report generated by it.

So, what are you waiting for? Get hold of your credit score from credit bureau and fulfill your wishes more economically.
Visit www.cibilconsultants.com

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