Why do Banks Check your CIBIL Score before a Loan Approval? Get to Know Here

To know what is a good CIBIL score, you have to first know everything about your credit score. CIBIL is a credit information company that provides this score based on your Credit Information Report (CIR).

The CIR or credit report stands for your finanical record. These data are collected by CIBIL from the financial institutions that have provided you with a credit.

Some of the data in the CIR is also the reason why financial institutions check your credit score. For example, the types of credit, like loans or credit cards, that you have availed. The credit report also includes the size of these credits and the outstanding balance you are yet to pay.

Additional Read: Top 5 Safe Investments For The Long-term in India

The CIR also includes your credits that are overdue. Loan EMIs and credit card bills remaining overdue will reduce your credit score.

Know all about your CIBIL score and CIR to maintain the best financial records. If you have a high CIBIL score, you can get loans with the most attractive terms from lenders.

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