People who deal with credit cards and have taken a loan or have a pending balance on the credit cards would easily understand the meaning and importance of the cibil score or the credit score. Cibil or credit score or report simply denotes a graph where an account holder’s reputation in terms of paying back the loan is straight away reflected. The score truly depends upon the behavior of the debtor towards his or her cards and the loan payments.
A high cibil score means that the account holder is responsible enough to pay all his installments and interests on time. This score is calculated on a very technical platform where various aspects such as the due date maintenance, regular payments, past loan repayments etc. are calculated. In case a person fails to pay the periodical interest on time or have missed out on the due dates or is irregular towards the loan payments then the cibil score gets decreased which denotes that the particular debtor is not good at paying back the debts he or she holds. (more…)