Facts and myths about CIBIL scores
The CIBIL score, often known as the credit score, is an important factor in determining a prospective borrower’s eligibility for any loan, secured or unsecured. The three-digit CIBIL score ranges from 300 to 900. It is determined using a variety of factors, including an individual’s credit history and the amount of open loans. However, there are numerous misconceptions about the CIBIL score and how it is determined. Let’s look at some of the most frequent CIBIL score myths and the reality behind them. Checking CIBIL score must be considered while making a credit decision. When a credit application is submitted, lenders pull a credit report to evaluate the borrower’s credit repayment history and the risk connected with the proposal. CIBIL generates two types of reports for its users. The first is an individual credit report, and the second is a corporation credit report, also known as a CIBIL report. CIBIL is required when applying for a loan from a bank or other financial institution.