Credit information company Cibil and Transunion on Thursday formally launched a newer version of their score which incorporates customers having a credit history of less than six months.
The Cibil TransUnion Score 2.0 will grade customers on a risk index ranging from 1 to 5, with 1 denoting the highest risk and 5 the lowest risk of default.
The new version will use different parameters like past delinquency, movement of average balances in accounts, credit seeking enquiries made, credit utilisation in the past, type of credit availed and the age for arriving at a number on the risk index of 1 to 5.
Cibil's managing director Arun Thukral said the new version has been launched keeping in mind the changes observed in borrowing behaviour of consumers and evolving market landscape.
Earlier, customers having a credit history of less than six months were not able to get a credit score which will not be the case now, he said.
The newer version is initially made available only for Cibil's 862 member banks and financial institutions, after which it will be available for the customers as well, he said, without giving an exact timeline for the completion of the process.
However, the fee structures for customers for availing their individual scores will not change, Thukral said.