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  • Category: Miscellaneous

    More information about credit score

    The link of the first Forum post on credit score is given below:-
    At what credit score can a person get loan from banks?

    Now some more necessary information on credit score:

    (a) CIBIL is not the only credit score company of India. However, this is the oldest one working in this field and is well-known. In addition to CIBIL, there are another three agencies which gives credit scores for individuals.
    (b) The credit score of an individual will not be the same across various agencies. It would differ marginally as these agencies use different models.
    (c) When a financial institution asks for the Credit Information Report (CIR) of a person, it is a hard enquiry and it adversely impacts the score. However, when an individual seeks his/her own report, it is a soft enquiry and does not affect the credit score.
  • #574828
    The author has been posting series on information pertaining to credit worthiness of the person seeking loan and it varies from company to company. One thing is sure, if the present loan holder pays the dues in time. the company would offer further credit without much paper work and that kind of bonding is created for future help too.
    K Mohan
    I consider myself as the learner everyday

  • #574837
    1. There are many credit rating agencies working in India e.g. Crisil Limited, Credit Analysis & Research Ltd. (CARE), ICRA Limited, Fitch Ratings India Private Ltd. (New York, USA), Equifax (Atlanta, United States), ONICRA, High Mark Credit Information Services, SME Rating Agency of India Ltd. (SMERA) and Brickwork Ratings India Private Ltd. etc.
    2. The Credit Information Bureau (India) Ltd, popularly known as CIBIL was incorporated in 2000 in India and is backed by TransUnion International and Dun and Bradstreet, which are major global credit bureaus and agencies.
    3. Only yesterday there was much discussion and deliberation in the forum section about writing off Rs. 1.14 lakh crore of bad debts by the PSU banks. I presume all such companies which had taken loans , including the Vijay Mallya's companies had submitted one or the other credit rating reports to the respective banks which had granted loans to them.
    4. CIBIL's credit score is not the only benchmark that banks take into account while approving loans though it helps the banks in taking a decision about the loan.

    Let us encourage each other in sharing knowledge.


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