CIBIL-Trans Union Score to give score cards to loan consumers

Indian credit rating agency, CIBIL and US-based credit information agency, Trans Union have tied up to form the CIBIL-Trans Union Score which will give a generic score of a loan consumer’s borrowing history. The new set-up will start in November.

The scores may range from 100 to 1,000 and this score card will help banks to decide the risk potential of a loan consumer as a borrower. This will also mean that consumers with a good credit history will get a chance to bargain for a lower interest rate for their loans.

Currently, the information on a consumer’s credit history is provided to CIBIL’s members through ‘credit information reports’. These online reports are available for member-banks, strictly for credit appraisal, at Rs 10 per report or more, depending on the frequency. Consumers can get their credit report from their respective banks on request.

After the score card, CIBIL also plans to introduce a separate score for each type of loan. Fraud alerts and escape data of customers are also a part of the different services in the pipeline.