CIBIL or Credit Information Bureau (India) Ltd is one of only four credit information providers in the country that is licensed by the RBI. It is considered the oldest and the most reliable. It essentially calculates your credit score, a three digit number between 300 and 900, and provides it to banks so they can judge your creditworthiness. Usually, anything over 700 is considered good.
But this whole process is anything but straightforward. In fact, it is shrouded in mystery. Each of these bureaus typically have their own algorithm to compute your credit score. And they are all somewhat similar. But nobody–not the borrowers and not even the banks–fully understand how these credit information providers, like Cibil, actually rate finances.
In this episode, we try to demystify these credit bureaus and their mystery calculations that decide our fate.
Tune in.
Attend The Ken's next event. Details
here.
*This episode was first published on February 6, 2025Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.
If you are a student who wants to participate in The Ken's case build competition, or if you simply want to read the case, you can do that here:
What is Daybreak?
Business news is complex and overwhelming. It doesn’t have to be. Every day of the week, from Monday to Friday, Daybreak tells one business story that’s significant, simple and powerful.
Hosted from The Ken’s newsroom by Snigdha Sharma and Rahel Philipose, Daybreak relies on years of original reporting and analysis by some of India’s most experienced and talented business journalists.