Credit Information Bureau India Ltd, acronymed as CIBIL, is an organisation which was found in August 2000. They act as a credit rating agency for loan applicants in India. For this purpose they provide CIBIL score, just like FICO score in United States to help lenders in assessing the trustworthiness of the loan seeker.
For this purpose CIBIL collects and maintains details of the individual’s history related to loans and credit cards through banks and other creditors on a monthly basis. This information is processed through specialized algorithms to arrive at Credit Information Reports, which help lenders to assess the loan worthiness of the applicant.
Parameters on which CIBIL score is based
All the parameter on which your CIBIL credit score is based, are not a publicly announced by CIBIL. But it is widely believed that for getting a good CIBIL score you should have a good rating on the following parameters.
- How many instances of late payment/missed payments you have in the past
- Do you possess and maintain a large number of credit cards and loans
- Are you in a habit of utilizing your credit limits fully
- The proportion of unsecured debt to secured ones in your profile
- For how many borrowers you have acted as a current and for how much amount
- Do you frequently inquire about your CIBIL score
- The duration of your and un-tainted credit history
- How often you are able to settle your loan timely
CIBIL defaulter list
I have noticed that many people search the Internet to check whether their names appears in the CIBIL defaulter list. It should be noted that there is no such thing as CIBIL defaulters list. CIBIL only calculates the credit rating of the applicants based upon the past borrowing habits and instances.
Requesting CIBIL to remove your name from the CIBIL defaulter list is not going to do anything. Instead of wasting your time in requesting CIBIL to remove your name from CIBIL defaulter list you should concentrate upon improving your credit profile and paying your loans and credits on due date in due time and learn to live within your means.