28-Aug-2015 written by : FSI-Team
Crediting is the easiest and commonest way to escape your financial difficulties at the time of need. When you are in urgent requirement of buying something or want to spend money on a service that is crucial, and yet do not have the savings and the money to do so, you can easily rely on the option of getting a loan or using a credit card and repaying the amount later. However, borrowing this amount can be done several times and from different financial institutions. And when you are looking for a new loan, the finance companies have every right to check whether you have been a good borrower and returned the money on time or not. This calculation and determination of our eligibility is known as the credit report and the exact position or rate of your performance is known as the credit score.
It is quite a difficult task to keep a track record of all the financial supports that you have taken and it is more difficult for the banks and finance companies to contact other finance companies to get the information regarding your credit history with them. Therefore, the Credit Information Bureau (INDIA) Limited or CIBIL, the first credit information company in India holds the entire information regarding every individual’s credit records and history. Depending on this information, you get your CIBIL analysis and credit report.
As each and every finance organization is by default a member of CIBIL, they can easily get access to this information and your credit score. Thus, your credit report helps determine whether you will be getting the approval of the loan that you have applied for.
As you will easily get your CIBIL score, you can utilize it to improve your score. Knowing the score beforehand is extremely advantageous and you will be able to make sure that your score works in your favor while getting approved for a new loan.
When you get your CIBIL report, you will understand which factors have been positive or beneficial for your credit score and which have been negative or a hindrance. This way, you can utilize this information in improving your credit score.