Indian consumers can now buy their credit scores

Indian consumers can now buy their credit scores, enabling them to better manage their credit and access loans faster, if their ratings are good.

Credit Information Bureau (India) Ltd (Cibil) on Wednesday announced that consumers can buy their Cibil TransUnion score – which plays a critical role in the loan approval process of credit institutions – for Rs450 and make informed buying decisions, besides availing speedier access to credit.

They can also derive benefits associated with good credit history. The score will be provided along with the Cibil credit information report. The Cibil TransUnion score is a three-digit numeric summary, ranging from 300 to 900, of a consumer's credit history, compiled from information obtained from credit institutions who are members of the agency.

An individual's credit score provides the lender with an indication of the 'probability of default' by the borrower based on his / her credit history. The score helps the lender in estimating the likelihood of repayment of loan based on the individual's past pattern of credit usage and loan repayment behaviour.

The closer the score is to 900, the more confidence the institution will have in the individual's ability to repay the loan and better the chances of the individual's application getting approved.

''We are very happy to provide this service directly to consumers as knowing their Cibil TransUnion Score will help them assess their credit history better and enable them to 'see themselves as lenders do,''' says Arun Thukral, managing director, Cibil. ''We believe that this initiative will also be helpful in making the lending process more transparent, inculcating financial discipline and enhancing consumer awareness on credit information.''