CIBIL: We Explain.
Are you planning to buy your dream home, but can’t seem to get your loan application passed even though your earnings and savings are good? Or perhaps you are at loss why your latest request for a credit, like many before it, was turned down?
The answers to your questions probably lie in your CIBIL credit report. Get a copy of it today, especially if you’re planning a car or home purchase – or even applying for a credit card. The information shared here will help you learn all that you needed to know about CIBIL credit report and score.
What exactly is CIBIL?
CIBIL is an acronym of Credit Investigation Bureau of India. It is India’s first and, right now, only credit information bureau. It contains a detailed credit history of both consumer and commercial borrowers for financial institutions to you in determining loan eligibility.
Who all have equity share in CIBIL and who all are its members?
According to the CIBIL’s website, State Bank of India (40%), Housing Development Financing Corporation Limited (40%), Trans Union International Inc. (10%), and Dun & Bradstreet Information Services India Private Limited (10%) have equity share in CIBIL.
All Banks, State Financial Corporations, Financial Institutions, Housing Finance Companies, Credit Card Companies, and Non-Banking Financial Companies are members of CIBIL. Each member shares credit history of people who have taken a loan or credit from it with CIBIL. Information shared by one member can be used by other members to make a decision regarding a loan application of an individual.
What is CIR?
CIR is an acronym of Credit Information Report. It contains credit history of an individual (that is, the loans he has taken and his payment history).
The purpose of CIR is to help lenders make an informed decision about whether to give or not give a credit to an individual. Useful as CIR is for lenders, it is quite beneficial to individuals to. It brings to their notice their credit history and how favorably a lender will view the loan application. It also shows them the areas that require attention if they want to improve their chances of availing a loan.
What are the different sections in a CIBIL report?
The CIBIL report consists of six sections.
- CIBIL TransUnion Score
CIBIL TransUnion Score is a 3-digit number that provides a measure of a borrower’s credit worthiness. The credit score, ranging from 300 to 900, is derived from information listed in two sections of CIR: Accounts and Enquiries. The credit score plays an important role in the loan approval process, and closer you are to 900, the better are your chances of availing a loan.
Kindly note credit report and credit score, although frequently used interchangeably, are not the same thing. While the credit score lists a value that serves as a reference point to lenders evaluating your credit application, the report gives them complete information about the loans you’ve taken and your repayment history.
- Personal Information
Personal details, like Name, Gender, DOB, and Identification Type, are listed in this section. CIBIL attains this data from your lender, so you need to cross-check it for accuracy.
- Contact Information
Your contact details, such as your residential address, email address, telephone number, etc. are listed in this section. You must go through this section carefully to ensure there is no mistake.
- Employment Information
Recent details about your income, occupation, and employment are mentioned in this section. The information regarding your income captured when you applied for the loan is listed here.
- Account Information
The most vital section of your CIBIL Information Report, it lists all information related to your lending history and credit history, like the type of loan you’ve taken, the name of the institution from where you’ve taken the loan, the loan amount, loan opening as well as loan closing date, the interest rate, loan status, and payment history.
- Enquiry Information
Names of the lenders who view your CIR to evaluate your loan application are mentioned here. Along with the name, the purpose of the enquiry, the amount of loan you’ve applied, and the enquiry date are listed here.
How can I access my CIBIL Report and Score?
Accessing your CIBIL Score and report is just a click away. However, this information is not free; you will need to pay a fee of Rs 470. Go to the CIBIL website, fill a request form and feed in your details, like your name, address, DOB, gender, etc. You will also need self-attested copies of address and identity proof.
You can pay online via net banking or a credit or debit or cash card. A unique registration ID as well as a transaction ID will be generated once payment is successfully processed. Next, you will be asked to provide answers to a few security questions and soft copies of the address and identity proof.
Once the application is authentication, your credit score and CIR will be sent you via email. In case the authentication fails, to get a copy of your score a CIR, you’ll need to mail the hard copy of your receipt of online payment and your identity and address proof to the CIBIL address:
Consumer Relations: Credit Information Bureau (India) Limited,
Hoechst House, 6th Floor, 193 Backbay Reclamation,
Nariman Point, Mumbai 400 021, India.
Tel.: 022 61404300, email: [email protected]
Those of you who don’t want to go online will have to do the following to get a copy of their CIBIL score and report:
- Fill in the application form (first take a printout of it)
- Make a demand draft of Rs 470
- Attach copies of your address and identity proof
- Mail everything to the above-mentioned CIBIL mailing address
What does an “NH” or “NA” entry against CIBIL score means?
An “NH” or “NA” score means any of the following three things:
- You have no credit history, or your credit is so new that it cannot be rated
- You have recorded zero credit activity in the past 24 months (2 years)
- All cards that you have are add-on cards and you have no credit exposure
What are the main factors that affect my CIBIL score?
Many factors affect your credit score, the following being the five main ones:
- Default or Settled status: Status of your loans is listed in the report. Nothing brings your score down more severely than a loan that has not been paid (defaulted) or has been paid only partially (settled).
- Late payments: Paying your payments late can also hurt your score big time. The more payments you miss, the worse will be your score.
- High credit utilization ratio: How much percentage of your total credit you use each month also affects your score. Your score drops when you have a high credit utilization ratio.
- Unhealthy secured to unsecured loan ration: Secured loans include collateral while unsecured ones don’t. If you only have unsecured loans, like personal loans, or most of your loans are unsecured loans, your score will be adversely impacted.
- Exhibiting “Credit Hungry” behavior: Seeking out too many loans in a short period is described as “Credit Hungry”. Such a behavior is unfavorably looked at by lenders.
Get yours at CIBIL.com