Assignment: Features Of Cibil

By tanvi devrukhkar

Features are as follows:

1 Range: CIBIL scores range from 300 to 900, with a higher score indicating better
creditworthiness A score closer to 900 is considered more favorable

2 Credit Report: CIBIL scores are derived from an individual's credit report, which includes
their credit history, repayment track record, outstanding debts, and credit inquiries It is
essential for individuals to review their credit reports periodically to ensure accuracy and
address any discrepancies

3 New Risk Index: With the updated version, they will have a different rating on a scale of 1
to 5 A score of 1 indicates high risk, whereas 5 indicates low risk Customers having a
credit history of more than six months will be offered a score ranging from 300 to 900, and
a score above 750 is considered ideal

4 Lender's Decision Making: Lenders often use CIBIL scores as one of the key factors in
their decision-making process for granting loans or credit Higher CIBIL scores can improve
the chances of loan approval and may also result in more favorable interest rates and terms

5 Regular Updates: CIBIL scores are updated periodically based on the information
provided by banks and financial institutions Regular repayments, responsible credit
utilization, and maintaining a healthy credit profile can help improve CIBIL scores over time

6 NA or NH: If a customer has no credit history or the CIBIL has not received any credit
report over the past 24 months for this customer, but he/she has made a query, then the
customer will be assigned -1 or NA/NH NA or NH indicates that the person has a credit
history, but no report has been added to CIBIL 24 months before the inquiry