CIBIL TransUnion Score 2.0 – Features & Risk Index

What is New in CIBIL TransUnion Score 2.0

CIBIL TransUnion Score 2.0 is an updated and more customized version that provides instant and reliable credit decisions. This advanced tool from CIBIL is used by most of Indian lenders in offering credit-related decisions. The predictions that are provided by the latest CIBIL TransUnion Score 2.0 are even more accurate. It helps in providing improved credit decisions by enabling the lender to identify a number of high-risk customers in the lower score bands.

Features of CIBIL TransUnion 2.0

Most people aren’t aware of the true motive of implementing the better version of CIBIL TransUnion 2.0. Further discussed are the integral features of updated CIBIL TransUnion 2.0 as presented in the form of the latest version:

Intentional Risk Decision

• The prime objective of this new credit score is to make necessary decisions for approving loans. Furthermore, customers holding a credit history of less than 6 months would have a different rating on a scale of 1 to 5. Also, customers having a credit history of more than 6 months will be offered a score ranging from 300-900
• Moreover, customers holding credit scores for less than 6 months would be ranked from 1-5. This factor assists the lenders in categorizing the entrant credit customers ranging from high risk to low risk. Under this, 1 highlights high risk, and low risk is denoted by 5. To be precise, this score considers credit-seeking activity, days overdue in a given month, a person’s age, location, type of credit, etc.

Risk Index Analyses

Simple Accessibility

How to check CIBIL TransUnion score?

The CIBIL TransUnion Score 2.0 can be accessed through different channels such as the web and FTP. Moreover, the CIBIL credit information report as well as the CIBIL TransUnion Bureau credit uniqueness is also made accessible with the score. This score is beneficial for lenders to enhance the quality of credit decisions since you can spot the count of high-risk customers listed under the lower scoreboards.

Calculated Decision about the Applicant

The CIBIL Score 2.0 enhances the quality of decisions right through the customer lifecycle. Further, it also takes into consideration the individual’s repayment capacity. It also points to the fact that the new borrower has to be very watchful while making loan inquiries and paying bills since all of that is recorded with CIBIL.

Risk Index for CIBIL Score 2.0

For individuals who have a credit history of 6 months or more, they would be categorized as follows:

NA or NH

It particularly points out the fact that the customer has no credit history or CIBIL hasn’t received any update. This also indicates that the person has no credit history, however, queries have been made. Moreover, NA or NH also highlights that the person has a credit history, but there is no report added in the 24 months previous to the inquiry or hasn’t been informed to CIBIL.

300-900 CIBIL TransUnion Score

This factor indicates that the individual holds a credit history higher than 6 months and the fresh ideal score array is 662-697.

1-5 Ranking

This reveals that the individual manages a credit history that is less than 6 months. The indexed 5 rating indicates lower risk and higher risk is portrayed through 1.

These revised scores are seen as helpful for different banks to evaluate the latest borrowers whose threats weren’t known earlier. Moreover, the older borrowers would hold a simplified parameter, and additional information related to the borrower would be exposed.

Tips to Improve Your CIBIL Score

As per CIBIL norms, a credit score of 750+ or as close to 900 is considered good and permits you to get a superior chance at accessing a loan or credit card. Hence, you need to maintain make effective financial decisions to manage and maintain a decent credit score. Here are some useful tips that can work to improve your CIBIL score.

Time-to-time payments: One of the prominent setbacks to your CIBIL score is a terrible repayment history. One needs to understand that missed or late payments are always mentioned in your credit history. Therefore, it leads to a dip in your score.

Utilize credit cards sensibly: Another factor that supports your credit reliance is using your credit card to the higher limit. One should switch to debit payment or cash-only for dropping expenses on your credit card.

No credit-hungry nature: In case your credit usage is high, the lenders would abstain from offering you a loan. Preferably, there is no requirement for more than two credit cards. Try to increase their limit and deactivate any added cards you possess.

Debt Payments: Remember that, any sort of debt, either small or large, does play a significant role in evaluating your credit score. Hence, make debt payments as soon as possible.

Prevent needless expenditure: For customers, it is quite vital to understand the difference between privilege and necessity. This would surely help you control yourself from making a needless expenditure.

Know your Credit Score if planning for a Home Loan Check Now

Every transaction does get recorded and hampers your credit report. The improved version of the CIBIL credit score works to increase credit diffusion and financial addition in the country. Interestingly, it is a better signal of risky customers and is designed with the consideration of the consumers and the country’s market. With CIBIL 2.0, the various lenders can successfully separate unreliable loan applicants.

You can check the CIBIL TransUnion Score 2.0 from CIBIL’s official website. You need to always stay up-to-date with the possession of your credit report and credit score; this is a handy practice that will assist you in filling out loan or credit card applications quickly. Moreover, you can even check your eligibility through CIBIL’s different services that require a credit score as a mandatory detail.

Contact Address

TransUnion CIBIL Limited

One Indiabulls,
19th Floor, Tower 2A-2B,
Senapati Bapat Marg, Elphinstone Road,
Mumbai 400 013.
Tel : +91 – 22 – 6638 4600

FAQs

Q. What is the importance of the TransUnion CIBIL score?

Ans. CIBIL TransUnion Score helps lenders gauge the consumers’ risk and make informed decisions regarding lending them credit products.

Q. What is a good TransUnion CIBIL score?

Ans. The updated version of TransUnion Score 2.0 provides a numerical value of 1-5 to customers who are at high, medium, or low risk for the lenders.

Q. How can the CIBIL TransUnion Score affect my Borrowing?

Ans. Any numerical score as close to 5 in the range of 1-5 is considered at the lowest risk of becoming a defaulter. Thus, helps you to avail credit facilities at low interest rates.

Q. Why is the TransUnion CIBIL score 2.0 different from the basic CIBIL score?

Ans. TransUnion CIBIL score 2.0 is an advanced calculation of score that provides improved credit decision-making services to lenders that ranges from 1-5, whereas CIBIL score depicts the creditworthiness and past credit behaviour of an individual. The CIBIL score ranges from 300-900 wherein any score above 750 is considered decent in availing loans and credit cards.