A credit bureau is a repository of credit information of all customers of its members, which comprises banks and financial institutions. CIBIL (Credit Information Bureau of India Limited) is one such organization that collates credit information contributed by its members and disseminates it to lenders, helping them in their credit-decision-making and lending process. CIBIL houses only credit information i.e. information on loans and credit cards. It does not have any details of customers' savings accounts or fixed deposit accounts. Members share this credit information of their customers with CIBIL month on month so that CIBIL's database is updated. This information is then used by credit underwriters to make effective credit decisions.
Therefore, with proper financial planning and by maintaining a good track record of repayment of dues for loans / credit cards, you will be able to build a good credit history for yourself. This, in turn, may help you in getting future loans / credit cards easily or on better terms.
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