In this Video tutorial, we discuss 45 different ways, how to improve your credit scores and how to improve CIBIL scores immediately. Without a good credit score ie relatively a high CIBIL score, it is next to impossible to get any kind of loan from any bank or any financial institution in India.
As the business grows, every entrepreneur gets involved into credit in one form or the other. Given the present day context, there is not a single business owner or an entrepreneur who has not taken some form of credit. The very foundation of banking is based on credit. Since every bank & financial organisation gives credit to people for as many reasons one can imagine and in as many ways as possible. A need was probably felt to monitor all the activities concerning credits like how much credit one takes, what one does with all the credit, what is their payment pattern, how they pay back, etc.
Hence to monitor all these credit activities, not only of individuals but even of companies, Governments all over the world have created organisations to track all credit & financial transactions of all individuals & companies. These are called Credit History Tracking Agencies or Credit Bureaus or Credit Monitoring Agencies. Every business entrepreneur should be aware of these Credit Bureaus, Credit Monitoring Agencies, credit scores & credit history etc.
In India, the oldest & the biggest credit bureau is the TransUnion CIBIL Credit Information Bureau India Limited. TransUnion CIBIL Limited is a credit information company operating in India. It maintains credit files on 600 million individuals and 32 million businesses. TransUnion is one of four credit bureaus operating in India and is part of TransUnion, an American multinational group. CIBIL generates a score which is popularly called CIBIL Score.
Apart from CIBIL, there are 3 more credit bureaus operating in India & they are Equifax Credit Information Services, Experian Credit Information Company of India and CRIF High Mark Credit Information Services.
These four above mentioned agencies are independent companies & independent entities, who by research, collect all sorts of data on your various financial transactions of bank’s customers and sell it to any lenders be it an any bank or any financial institution. They gather all the data about your credit history and come out with a Credit Report. A credit report consists of information such as number and types of loans a customer has borrowed, various credit accounts, how long each account has been open, pending amounts, whether payments are paid on time and various other related information & these information are passed on to the potential lenders who seek these information.
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