CIBIL Credit score

In India, Credit information bureau of India ltd, better known as CIBIL, maintains a track record of all loans and credit cards that a customer has of its member banks and financial institutions. It allots credit scores to customers based on this information. Apart from lower interest rate, good credit score bestow upon the customer many benefits such as faster loan disbursal, waiver in processing fee etc.

CIBIL's credit score is a three-digit code. It ranges between 100-900.This score is further divided into three categories: High, good and low. A credit score ranging 751-900 is considered to be high. When a customer has been prompt in making all his payments, there is no amount overdue in any of the loan accounts and there has been no bounce or settlement in the closed accounts too, his CIBIL score would be high. Anything between 700 and 750 is high and the rating is good. If it is less than 700 and greater than 500, it is considered average and very low for 500 and below.

FICO score developed by FICO (Fair Isaac Corporation) is the most widely used credit score in America. The FICO credit score ranges between 300 and 850. Sweden, too, has a credit score system. It has only two categories good and bad. Likewise, several other countries have their own credit scoring systems.

Ways to improve your credit score

Make sure that the information contained in your credit report is accurate. Credit information companies (Regulation) Act (CICRA) gives you the right to dispute your credit report errors. In case of any error, you can take up the matter with the concerned credit bureau and the organization that has provided incorrect information to the bureau. If there are is no error and you feel that your credit score is low, you can improve by taking care of the following things.