Cheaper Rate Loan with Credit Score
Cibil (Credit Information Bureau (India) Ltd), the financial credit rating which collects the data and maintains the record of the financial borrowers giving individuals a bargaining chip for cheaper loans with access credit scores for a fee of Rs. 450. The Cibil TransUnion Score is a three-digit number ranging 300-900, A score closer to 900 indicates a borrower is least likely to default which helps in estimating the likelihood of loan repayments.
According to the bureau since 2007 banks have been accessing the scores. Before lending they check individual credit history. In 2008, there are 37% of new loans sanctioned the ratio jumped to 57% in 2010 and had a score above 800. Chief counselor at Abhay Credit Counseling Centre V.N. Kulkarni said the scores become a two-way street with consumers now gaining access to it.
Kulkarni said Indian consumers can now bargain for a lower rate with banks armed with their credit score, with filling a form at cibil.com and paying Rs. 450 consumers can access their detailed credit score and report. Arun Thukral said consumers can expect to get a full the score and report within one week to 10 days of applying. By paying Rs. 142 consumers can access their reports, the report does not indicate the likelihood of getting a loan and consists of a summary of loans an individual has taken which a credit score provides.