What is the CIBIL TransUnion Score and what does it mean?
The CIBIL TransUnion Score is a 3 digit numeric summary of your credit history. The Score is derived by using the details found in the "Accounts" and "Enquiries" sections on your Credit Information Report (CIR) and ranges from 300 to 900. The closer your Score is to 900, the more favorably your loan application will be viewed by a credit institution. The CIBIL Score plays a critical role in the loan approval process.
What does my CIBIL Score mean?
An individual’s Credit Score provides a credit institution with an indication of the "probability of default" of the individual based on their credit history. What this means in simple English is that the Score tells a credit institution how likely you are to pay back a loan (should the credit institution choose to sanction your loan) based on your past pattern of credit usage and loan repayment behavior. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved.
What are the major factors that affect my Score?
There are 4 major factors that affect your Score. These are described below:
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