Understanding the New CIBIL Transunion Score

Not only by the finance investment companies in India, but by millions of professionals and entrepreneurs all over the country the CIBIL score is considered highly important for credit cards & loan approval. The term CIBIL stands for Credit Investigation Bureau India Ltd.  It’s India’s first credit information company that collects and manages payment records for loans and credit cards, for both individuals as well as commercial entities.

The payment records are collected every month from various financial institutions/finance investment companies in India and a credit information report and a credit score are issued. This allow lenders to know about the credit status of an individual and approve those who looking to apply for new loans, thereby making the CIBIL score extremely valuable.

What is CIBIL Transunion Score:

According to finance investment companies in India CIBIL Transunion score 2.0 is nothing but the improved version of the original CIBIL credit score and has been created considering the current habits and changes in both consumer profiles and credit data. With the introduction of the new version many individuals have notice a drop in their score. However, this drop will not affect the loan approval process because both versions of the score have different score eligibilities.

Aim of CIBIL Transunion Score:

Main aim of the CIBIL Transunion score 2.0 is to make it easier for individuals and companies having short credit history to get loan approval says finance investment companies in India. It tries to classify new borrowers with credit history of less than 6 months into specific categories.  Individuals are rated on a range of 1 to 5, with 1 being the “High Risk” category and 5 being the “Low Risk” category. The higher your score is the lower amount of risk you will have on your credit report.

How to Improve Your Credit Score:

It is almost clear to you now that if you aspire to take a loan in the near future, you’re required to maintain a good CIBIL transunion score. Here are some of the important ways by which you can maintain a good CIBIL Transunion score:

• ·        Always pay your bills on time as it can bring a good impact on your CIBIL rating. Missed and delayed payments have extremely negative effect on CIBIL Transunion score
• Always keep the debt amount on your bills and credit cards very low as high number of outstanding debt impacts the score negatively
• ·        Apply for new credit accounts only when it’s absolutely necessary. Having numerous account is not that much favorable for a good CIBIL score
• ·        Instead of moving your debt around, pay it off as soon as possible. Never cancel unused cards to improve your score, since owning the same amount but having a smaller amount of open accounts can actually lower your CIBIL score

Applying these tips will surely help you bring a good change in your CIBIL score. And, a high CIBIL score will open up an entirely new plethora of financial options at your doorsteps, such as personal loan approval, business loan, home, loan against property and more.