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CIBIL REPORT
CIBIL REPORT
- What is CIBIL Score?
A Credit Score or the CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIR (Credit Information Report).
A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time.
A CIR has detailed information on the credit you have availed, such as home loan, automobile loan, credit card, personal loan, overdraft facilities.
The CIBIL Score plays a critical role in the loan application process. After an applicant fills out the application form and hands it over to the lender, the lender first checks the credit score and credit report of the applicant. If the credit score is low, the lender may not even consider the application further and reject it at that point. If the credit score is high, the lender will look into the application and consider other details to determine if the applicant is credit-worthy. The credit score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved.
CIBIL score ranges from 300-900. 900 is considered the best score. If you don’t have a credit history, your CIBIL score will be -1. If you have a credit history of just 6 months, your CIBIL score will be 0. It usually takes 18-36 months to build your credit history.
A CIBIL score can range from 300 to 900 with 300 being the bottom end and 900 being the best score possible. Here is what your score could mean.
0 or -1: If your score is 0 then it just means that you have no credit history created via a credit card or loans. You might want to consider taking one so that you can get a credit history going.
350 – 550: Alarm bells should be ringing because this is a bad score. It means you have been defaulting on payments and the chances of getting new loans/credit cards are minimal.
550 – 650: This is an acceptable region to be in since it indicates that you are fairly regular with your payments and can be trusted with new loans and cards. Your loan applications are also likely to be approved.
650 – 750: You are on the right path. You will not face too many problems with loans and credit cards and should you stick to your current habits, you could reach the best CIBIL scores too.
750 – 900: This is the best range to be in since it means that you are a financial guru. You are regular with credit payments and have a really good payment history. Banks will tend to offer you credit products with such a score.
A score of above 750 would entitle you to negotiate with the lender for concessional rate of interest.
- How to improve Your CIBIL Score?
You can improve your Credit Score by maintaining a good credit history. This will be viewed favorably by lenders and it can be done with 6 simple rules:
- Always pay your dues on time
Late payments are viewed negatively by lenders.
- Keep your balances low
Always be prudent to not use too much of credit and control your utilization.
- Maintain a healthy mix of credit
It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards). Too many unsecured loans may be viewed negatively.
- Apply for new credit in moderation
You don’t want to seem Credit Hungry, apply for a new credit cautiously.
- Monitor your co-signed, guaranteed and joint accounts monthly
In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments. Your joint holder’s (or the guaranteed individual) negligence could affect your ability to access credit when you need it.
- Review you credit history frequently throughout the year
Purchase your CIR from time to time to avoid unpleasant surprises in the form of a rejected loan application.
Major factors that affects one’s credit score.
There are 4 major factors that affect your score:
- Payment history
Making late payments or defaulting your EMIs or dues (recently or consistently) shows you are having trouble to pay your existing credit obligations and will negatively affect your score.
- High utilization of Credit Limit
While increased spending on your credit card will not necessarily affect your score in a negative manner but an increase in the current balance of your credit card indicates an increased repayment burden and may negatively affect your score.
- Higher percentage of credit cards or personal loans (also known as unsecured loan)
Having a balanced mix between the secured loans (such as Auto, Home loan) and unsecured loan (such as Personal loan, Credit Card) is likely to have a more positive affect on your score.
- Many new accounts opened recently
If you have recently been sanctioned multiple loans and credit cards, then lenders will view your application with caution because this behavior indicates your debt burden has increased, which will negatively impact your score.
- How to Obtain CIBIL Report?
To get a CIBIL report is very easy, you just have to-
- Log in to the official CIBIL website www.cibil.com
- Fill in your personal information and other relevant facts.
- Pay the required amount via your debit card, credit card or net banking.
There are two types of obtaining credit report
- For Individuals
- For Company
For individuals
For Subscription you have to pay some charges which are as follows
CIBIL Score and Report - Rs 550/-
Bi-Annual Subscription (2 Score Reports) -Rs 800/-
Quarterly Subscription (4 Score Reports) -Rs 1200/-
For company
- You just have to fill a form on www.cibil.com/online/Company-credit-report.do
- Pay Rs 3000 via credit card/ debit card/cash card/Net Banking
- You will be mailed a unique CIBIL Registration ID & Transaction ID on your email id upon successful completion of your payment transaction
- Post payment upload your KYC Documents
- How to Resolve CIBIL Inaccuracies?
Your Credit Information Report (CIR) plays a large part in the loan application process. Hence, any inaccuracy in your CIR may result in reduced chances of a loan approval. If any information on your CIR is inaccurate or needs to be updated, follow the below mentioned steps to initiate a dispute
A dispute request can be raised based on either a CIR purchased by you directly from CIBIL or a CIR accessed by the Credit Institution (CI) with whom you have applied for a loan.
If you have received your report from CIBIL
- Login to your account
- Click on Raise a dispute
- Select the relevant section which you want to dispute
If you have received your report from lender
You will need a control number to raise a dispute. The Control Number is a unique number found on the top right hand side of your CIBIL Report. It will be helpful if you have your CIBIL Report accessible.
- Enter your personal details and the control number in the online dispute form and click Submit
- Select your relevant account and then submit your dispute.
