Money Guru: Credit score plays a big role in taking a loan. If you have a good credit score then it is easy to get a loan. But the question is why? Why credit score is important? What is CIBIL score? How is CIBIL Score determined? What is the CIBIL score required for? What is CIBIL Report? CIBIL Score Vs CIBIL Report? 

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Expert Vikas Puri, Head of West Zone, Complete Circle Capital Pvt. Ltd. has answers to all these questions as he explains this in a chat with Swati Raina on the popular TV program Money Guru.

What is a credit score?
A credit score is a three-digit number that tells your credit history. It is determined by financial transactions that you do such as transactions with banks and financial institutions. CIBIL is the largest credit bureau company in the country. CIBIL Score is your credit score.

Credit Bureau
TransUnion CIBIL
Equifax
Experian
CRIF Highmark

What is your score?
  -                                   Score
very less                 -     less than 600
low                          -     600-649
OK                          -     650-699
good                       -     700-749
very good               -     750-900

Who has a credit score?
Bank
Financial Institution
Insurance Companies
Workplace

How is a credit score determined?
A credit score is determined by financial transactions. Many factors affect the credit score. Payment history plays an important role - not paying bills on time, paying EMIs late, holding more credit cards, excessive use of credit cards – lead to a bad credit score.

Low CIBIL Score?
If the CIBIL score is low, then it is a matter of concern. A person with a low CIBIL score will face many difficulties in taking a loan from the bank. Loans like personal loan, business loan because loan approval or rejection depends on the credit score. A low score increases the risk of loan rejection. Apart from this, a low score also has an impact on the loan amount.

www.cibil.com
Step 2: Enter Name, Email ID and Create a Password
Step 3: Enter ID, PIN Code, DOB, Mobile No.
Step 4: Enter the OTP received on the mobile
Step 5: Your CIBIL Score will be displayed in front of you.