A CIBIL Score is usually a three-digit numeric brief summary of your credit Record. The score is produced using the credit score identified in the CIR. A CIR is a person's credit payment history around loan types and credit rating institutions over a period of time.CIBIL collects and maintains an information of an individual's payment related to loans and credit cards. This information can now be used to create Credit Scores and CIR (Credit Information Reports) which are provided to credit institutions in order to help assess and approve loan applications.
When you use credit cards wisely, you establish a good credit history, which helps to establish a good credit score. You can get more financial options and opportunities with good credit srore, which are following:-
1) Low interest rates on credit cards and loans.
2) Good chance for credit card and loan approval.
3) More negotiating power.
4) Easy gets approved for higher limits.
5) Easier approval for houses and apartment rents.
6) Better car insurance rates.
7) Avoid security deposits on utilities.
Nowadays Many businesses judge your financial conditions based on your credit score. It can make life extremely difficult from getting a job or getting a place to live having bad credit. Here are common side-effects of bad credit.
1) High interest rates on your credit cards and loans
2) Credit and loan applications may not be approved
3) Difficulty getting approved for an apartment and car
4) Security deposits on utilities
5) You might get denied for employment
6) Higher insurance premiums
7) Calls from debt collectors
8) Difficulty starting your own business