Understanding credit scores and CIBIL scores for better loan options

Credit scores and CIBIL scores are important for obtaining loans. CIBIL scores, which range from 300 to 900, are specifically provided by TransUnion CIBIL and are widely used in India. A score above 700 is recommended for better loan terms. Credit scores reflect an individual's credit history and are calculated by various bureaus, including CIBIL, Experian, Equifax, and CRIF High Mark. Each bureau has its own scoring method, leading to slight differences in scores. Maintaining a healthy score is crucial for securing favorable loan conditions. Timely payments and avoiding defaults are essential, as even one missed payment can negatively impact your score. Regular hard inquiries should also be minimized to protect creditworthiness.