Credit Score is a measure of creditworthiness. In India people generally treat credit score as a CIBIL Score. In October 2012, TransUnion CIBIL launched a new version of CIBIL Score called “TransUnion CIBIL Score 2.0”.
The new TransUnion CIBIL Score 2.0 is built on more recent and richer credit history data, takes changing consumer profiles into account and is a more accurate and effective predictor of risk.
Let’s check what the new risk index says:
- The Individual who has no credit history and it has not been reported.
- The Individual who has no credit history but has only been enquired upon.
- The Individual who has credit history but none of that is reported in the 24 months prior to enquiry.
- In All these cases they are given -1 or NA or NH in their Credit Report.
- Those who are given 1 mean the highest risk of turning defaulter.
- Those who are given 2 mean a high risk of turning defaulter.
- Those who are given 3 mean a medium risk of turning defaulter.
- Those who are given 4 mean a low risk of turning defaulter.
- Those who are given 5 mean the lowest risk of turning defaulter.
- More accurate
- Better understanding of borrowers’ creditability
- Less cases of defaulters
- Lenders can make better decision
