What is Good and bad credit record?

Credit record matters!!

One fine day you go to a bank to get a loan for your house. Bank is reluctant to give loan to you and you may wonder why? Any bank before asking for collateral and to give you loan they will check for credit score i.e. your previous credit record.

You will have good credit score if you are repaying your loans in time. And you will have bad credit score when you are not paying your loans in time.

Who does this job?

In India under credit information companies act 2005, and under monitoring of reserve bank of India a Credit information bureau is created (CIBIL)

What is CIBIL? And why you need to know about it

CIBIL is a credit bureau company which maintains records of your previous credit card payments and loan repayments. These records are given by banks to the bureau and it prepares your credit score or credit report which in turn is used by banks whether to approve a loan or not.

Good and bad credit record

The reason for you having a bad credit record may be due to any of the reasons like not paying dues, you may not be financially well enough to pay in time or by intentionally default the loans. On the other hand if you pay your dues in time then you will have a good credit score and you have a high chance of your credit being approved.

So, it is better to maintain good credit score to fulfill your dreams.