In a world that is moving quickly towards simplification and Digital, information is available online very easily. For someone who handles their own finances, it is highly unlikely to have never come across the terms- CIBIL and Credit score rating. There are so many myths and wrong information floating around the concept of CIBIL score calculation which allows financial lenders and credit card issuers to take undue advantage sometimes from their customers.Yes, CIBIL does provide insights into credit history at a fee of INR 550. But one session is not enough to understand why you have been rendered ineligible for loans. Hiring a professional financial advisor to understand concepts on how to correct CIBIL score is again a costly affair, especially for those who are planning to make a purchase shortly.
Here are 7 reasons why India desperately needs a platform for free CIBIL score calculation and consultation very soon.
- To understand what CIBIL actually does
CIBIL expands to Credit Information Bureau (India) Limited. Founded in year 2000, it is a ISO 27001:2005 certified organization entrusted with collection and maintenance of personal payment records related to cards and loans. Each month, your bank and loan provider furnish a detailed sheet on your history to the bureau.
Based on the CIBIL score calculation, your eligibility for a loan is decided by the approval agencies.
- How others can see your credit history?
A loan debt still hovering around your neck, and you thought other banks won’t come to know! Most loan borrowers who have failed to repay the loan and interest find their applications rejected. Loans for bad score are seldom approved and only way to check your eligibility for a loan is through CIBIL.
Free credit report checking India will definitely serve both customers and bank well.
- To know how loans and credit card payments are interlinked
An enquiry in your report is the instance where a bank or a credit issuing company opens your score sheet. Higher the number of enquiries against your account, poorer will be your score. This means, reduced chances of loan approval!
How to correct score in such cases? Make your card payments on time, and avoid opening a new credit card account before applying for a new loan. Your loan eligibility is more strongly connected to your credit card utilization rate than you previously anticipated.
- To avoid rejections on loan for bad credit score
If your score is less than 600, most banks will reject your loan application. Some lenders however do accept loan applications, but at a higher interest rate. If consumers get free credit report checking India, there will be reduced cases of loan rejections in the country.
Once you have an idea on how to correct CIBIL score before a loan application, your eligibility automatically improves.
- To stay away from business frauds
Are you being approached by a corporate identity to back a loan application as a guarantor? More often than not, business frauds escape the attention of the guarantor due to unavailability of a free report checking India online. If there are no previously known cases of card applications and loan applications, the bank will see no credit history.
- To know different cases where your CIBIL score may take a hit
CIBIL does not have any repayment pattern for such borrowers, which means your risk as a guarantor magnifies manifold. Your own chances of taking a loan in the future go for a toss due to unhealthy repayment behaviour reflecting in your CIBIL report, even if you are just a debt guarantor.
In India, both banks and private lenders should be able to see the credit behaviour of a borrower through free cibil score calculation sheet.
There are other benefits too of gaining free access to CIBIL score calculations online like:
- Whether an unpaid debt is still showing in your report despite being written off
- Managing disputes with banks and card issuers through CIBIL
- Understanding how your score actually decided your interest rate for loan, so that you can bargain for a relaxed rate
- Why you should think twice before pre-closing your loan account
- Understanding how mixing secured loans with unsecured loans can help you improve CIBIL score
As a fair indicator of your past credit payment behaviour, CIBIL score calculations available online will definitely save you time, money and effort instantly. With free CIBIL score online, doing business will become all the more easy and ethical.