Daybreak All you need to know about your Cibil score
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Feb 5, 2025 Delve into the critical role credit scores play in securing loans in India. Discover the complexities behind credit scoring systems and the mystery of algorithms used to evaluate your financial trustworthiness. Learn about the common pitfalls that can impact your score and gain valuable insights into improving financial habits for better credit management. This enlightening discussion sheds light on financial literacy and the importance of maintaining a healthy credit profile.
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Purav's Loan Rejection
- Purav, a high-earning engineer, was rejected for a loan despite a good financial profile.
- Many others face similar rejections due to low credit scores, highlighting the opaque nature of credit scoring.
CIBIL's Opaque Algorithm
- CIBIL, a major credit bureau in India, calculates credit scores using a mysterious algorithm.
- Neither borrowers nor banks fully understand this process, causing confusion and unfair loan rejections.
Maintain Payment History
- Maintain a clean payment history to improve your credit score.
- Every 30-day delay can reduce your score, taking two years to recover.