About CIBIL Report

Credit Information Bureau (India) Limited (CIBIL), is the credit information company in India, which is the ultimate place for information on credit products like credit cards and loans. They store up to date credit-related information of individuals and companies. They are also a global risk information provider that render services to organisation on Analytics and Consulting, Fraud and Identity Management, Portfolio and Collection Management, Credit report, Customer Acquisition, etc.

They collate monthly information from financial institutions such as banks, non-banking financial companies (NBFC), and organisation that lends people money. They use these records to computes individual and organizations CIBIL score and generate an up to date credit report.

 (CIBIL) focuses on two major areas: 

  • Commercial Bureau, which deals with the records of companies and institutions
  • Consumer Bureau, which deals with consumer credit records

CIBIL is licensed by the Reserve Bank of India (RBI) and is governed by the Credit Information Companies. Every month, all banks will present the data that has to do with their customers' loan or credit details such as the loans outstanding, repayment trends, and so on to CIBIL. This data is used to determine the CIBIL Score of individuals and Company Credit report (CCR) for the business consumers. With the help of CIBIL Credit report, lenders can estimate the borrowing capability of individual or company and offer loans appropriately.

What is CIBIL Score?

CIBIL score is a 3-digit number, which describes your financial health and creditworthiness. It ranges from 300-900. The more your score is closer to 900, the more the chance of receiving a loan or a credit card approval is. CIBIL Score can be checked online to know whether your score is closer or eligible for the loan.

A higher score indicates that you have been a good borrower because you have a good credit history. Specifically, for normal standards, when you have a score of 750 and above it will grant you quicker access to get credit cards with a low interest rate, with higher credit limits, and quick approval on home, car and personal loans.

However, maintaining a higher credit score is of high importance. The calculation of the CIBIL score is based on your credit history, credit type, and credit exposure.

These are some of the factors that determine your CIBIL score:

  • Amount of debt: The total amount of debt you have at a particular point in time will play a major role in your CIBIL score. Your credit utilisation ratio will be determined by the amount of credit used against your combined total credit limit. To get a high score on your total amount debt, you are expected to use as little as 30% of your total credit limit to get a low credit utilization ratio.
  • Length of credit history: Having a long credit history can be of good advantage for you. Lenders believe more in people with a credit card for years than someone that uses one credit card and close to jump to another, which is a pointer to a bad repayment habit.
  • Credit inquiries: Making multiple credit inquiries within a short period must be avoided, because when you apply for a credit card, a hard inquiry is made on your behalf, meaning that the lender will require your CIBIL report and having hard inquiry done on your record bring down your score.
  • Repayment history: On-time repayment of your credit card and loan EMIs should be your utmost priority, as it is one of the major factors that affect your CIBIL score payment history. To score high in your payment history, you must avoid late payments of your bills, as it will reduce your CIBIL score on payment history, which may put you in a disadvantaged position for credit cards or loans.
  • Type of credit: Having a balance between your credit cards will increase your score when your secure credit is balanced against your insecure credit.

 The following are the factors that make up the CIBIL score:

  • Credit Exposure: 25%
  • Credit Type and Duration: 25%
  • Payment History: 30%
  • Other Factors: 20%

How to Get Your CIBIL Score Report for Free?

CIBIL Score Report can be generated for free by following the below steps:

  • Visit CIBIL official website on www.cibil.com
  • Click on 'get your Free Annual CIBIL Score and Report'
  • Click on the free report button
  • Fill the online CIBIL Report form
  • Click on a 'No Thanks' tab
  • An email will be sent to you with a link and OTP login
  • Login to the portal to see your CIBIL Score
  • Select the 'view report' tab to see details

Importance of CIBIL Score in Credit Report

CIBIL Score is the first thing that lenders check when evaluating the borrower's loan application. CIBIL plays a very vital role in the Indian financial system because it helps those that apply for a home loan or other forms of credit, to secure credit on time. Banks and financial institutions have their standard that counts as a good CIBIL score. There are different rating agencies with different ways of scoring customers. A credit score by CIBIL lies between the range of 300 and 900. For example, there may be some lenders that do not accept home loan applications with a CIBIL score of 550 or lesser.

A high credit score will qualify you for a low interest rate on credit cards and loans. The lower the interest rate you pay, the more your chance to pay your debt fast and save more money for other things will be. A higher score of 750 and above will grant you quicker access to get low-interest rate credit cards, approval for higher credit limits, quick loan approvals, home loans, car loans, etc. 

What are the Factors That Affect the CIBIL Score?

The most vital thing on your credit score is how you are able to pay back your loan on time. Your payment history score is 30% of your credit report and on time repayments of loans and credit cards also completely plays an important part in having an excellent credit score. Here are the crucial factors that build a credit score.

  • On time payments

    Timely repayments mean healthier CIBIL score. The record of your on-time repayment is basically the most important factor that is used in calculating credit score since a dependable track record of on time payments represent a responsible borrower. The banks are assured that the repayment for the loan will be made on time as promised. Making payment late once or twice might have a negative effect on your record. It only indicates that the bank cannot rely on you for timely payments. So, make payment for all your credit card bills, your EMIs, and other debts. It is a significant factor in having an excellent credit score.

  • Numerous negative marks

    Having numerous negative marks could mean 'Foreclosure', 'Written Off' or 'Settled' record on past loan, etc. This also is a very important factor because having several negative marks could seriously hinder your qualification for a loan. Having negative marks show that you are unable to satisfactorily manage your loan or credit card, this flag a warning sign to the potential lender.

  • Years of credit history

    Having a long credit history gives banks confident about your credit performance since they have substantial information from your record.

  • Hard enquiries

    Whenever a potential lender/bank access your credit report to determine if you are qualified for loan or credit card, this kind of enquiry is called 'Hard Enquiry'. Each hard enquiry made on your report will slightly reduce your credit score because multiple hard inquiries without any loan approvals show that you have being applying to several lenders for credit facility to maximise your opportunity of getting the loan. It is capable of putting you in a disadvantaged position.

How Can I Increase My CIBIL Score Quickly?

It is important to note that there is no quick-fix to increase your score. However, it is possible to make substantial improvements to your credit score in a short time by doing the following:

  • The simplest and fastest thing you can do is to apply to CIBIL for a copy of your Credit report to check for reporting errors that might be unreasonably pulling down your score. For example, you might have repaid a loan in full, but it is still shown as active and possibly overdue, or a loan that is mistakenly reported under your name.
  • Once you find any error, you should file a disagreement resolution with the bureau to correct the matter immediately. The removal of any wrong entries or rectification of any mistake on your report that have a negative impact will help you improve your credit score.
  • Reduce your credit card spending to less than 50% of your limit. It will help you decrease your credit utilisation rate. This is one of the factors that power your credit score. For example, if your limit is 1 Lakh, ensure that you do not surpass monthly expenses of 50,000.
  • Try as much as possible to maintain a low balance across your credit cards. A higher credit limit gives you more chance to make payments and keep your balances low. This will also improve your score.
  • Do not request for any new cards nor cancel the old ones. Focus on how to improve your score with your existing cards. Applying for a new card may give you a higher credit limit, but there is a risk of not being able to make payments on time on the extra spending on that card.
  • Untimely payment or missed payments will make your score drop. Likewise, do not part with any existing credit cards probably because this will cause your overall credit limit to drop. This can also have an undesirable impact on your score. Your direct focus for improving your score should be on how to make minimum use of your current credit cards.
  • Set up reminders for payment to avoid missing payment deadlines. It is very important to make sure that all your repayments are on time and made in full because repayment history can account for up to 30% of your credit score. You can request for monthly email or SMS from your bank just to remind you of the payment deadline. You can also arrange to get the monthly balance paid directly from your bank account.

Difference between Consumer CIBIL Bureau vs. Commercial Bureau

Consumer CIBIL Bureau deals with individual credit report whereas Commercial CIBIL Bureau deals with the records of companies and institutions.

Companies have a credit report, which is referred to as Commercial CIBIL Report. This is the document used by banks to decide on which organisation is worthy of credit. The Corporate CIBIL Report issued to companies is called the Corporate Credit report. 

What is a Credit Report?

A credit report is a statement that gives information about individual or organisation's credit activity and current credit situation, such as the status of your credit card accounts and loan payment history.

Credit reporting companies, also known as consumer reporting agencies or credit bureaus, collate and store information on the creditworthiness of individuals and organisations that are submitted to them by creditors, such as credit card companies, lenders, and other financial institutions. 

Lenders use these reports to determine the creditworthiness and qualification of the borrower and help them decide if they will give loan to the person/organisation. It also helps to decide what interest rates they will offer the borrower. It is also helpful in dealing with other people or businesses, as other businesses might use credit reports to determine whether to provide someone with cable TV, to offer insurance, rent a house or apartment to you, utility, Internet, or cell phone service. Employers also use it to make decisions about you, if you agree to let them look at your credit report.

Listed are some of the significances of the Credit report: 

  • It enables transparency and streamlining in the loan approval process since customers and lenders have access to the same credit information. Customers will know why their loan is not approved, and lenders can make quick decisions about lending.
  • It offers a single and complete report of the customer's current and past borrowing and repayment history.
  • It gives potential lenders a comprehensive idea of the customer's spending behaviour and ability to pay back debt obligations.
  • It also gives individuals information on their credit capability and weaknesses, which enables them to take conscious steps to improve their creditworthiness.

Credit reports comprise the following information:

  • Personal information: This includes your name, the name used in the past to fix your credit account, including your nicknames if there is anyone.
  • Former and current addresses
  • Your date of birth 
  • Social Security number
  • Your correct phone numbers
  • Credit accounts

It has to do with your historical and current credit accounts, including the categories of account instalment, mortgage, revolving and so on.

  • The limit of the credit or amount
  • Account balance
  • History of account payment 

The exact date in which the account was opened and closed

  • Name of the creditor

There are four major credit information companies in India, which are: 

  • TransUnion CIBIL
  • Equifax
  • Experian
  • Highmark

Listed below are some differences in their operations:

Parameters TransUnion CIBIL Equifax Experian Highmark

Year of Establishment

Incorporated in the year 2000

Established in India in 2010

Founded in the year 2006

Founded in the year 2005

Ranges of credit score 

300 to 900

300 to 900

330 to 830

300 to 900

Charges 

  • You can get your annual free credit report.
  • You pay 550 to get a credit report and credit score. 
  • You are charged 164 for credit report only.
  • You can also subscribe for Bi-Annual Subscription, which is 2 Score Reports at 800 or Quarterly Subscription which is 4 Score Reports at 1,200.
  • Get one annual free credit report and you can also download free credit report in full by using the Equifax app on your mobile.
  • You can also access credit score and credit report for 400.
  • You pay 138 to get
    only credit report (taxes/ handling charges included).
  • Get one annual free credit report.
  • Payment for credit report and credit score is 399 (including taxes) and 138 for credit report only.
  • Get one annual free credit report.
  • You can also get your credit score and credit report for 399. 

Dispute resolution

  • Who have registered and received their credit report on my CIBIL portal, can login to the portal and fill dispute resolution form.
  • If your potential lender sends your credit report to you and you observe an error on your report, you can call for CIBIL score and report the website to file your complaint.
  • The Dispute Resolution Form can be downloaded from their website. You are to fill out the form and attach the necessary documents and send it to the bureau's address through speed post, courier or regular post.

You can download query form on the website or call at 022-6641 9000 if you want the query form to be mail to you. Send back the filled form with all necessary document attached.

You can forward an email to the customer care highlighting on queries, or call 020-67057878 to speak with a representative.

Credit report duration required to generate credit report

  • It takes about 7 days to verify the given documents.
  • After successful verification, you will receive login credentials to myCIBIL portal by registered post or through mail on your registered email address.
  • Your credit report will be dispatched upon verification and authentication of the provided documents. You may receive your credit report through courier between 7-10 days or through the post.
  • If you apply for the full free credit report using their mobile app, you will get the report after 1 day through an email. 

You will get your credit report dispatched within 20 business days from the date you submitted your documents and made payment.

If you are applying for the free credit report online, you will get your reporting your registered email address after you have successfully answered the credit report-related question.?

How to Read your CIBIL Credit Report?

Whenever you are applying for loans or credit cards, banks always check your credit report to determine your credit history and creditworthiness. Your score is what will determine if you will be granted the credit card or loan, the higher your credit score/ report the better your chances.

Your Credit Information Report contains detailed information on all the credits you have obtained, be it credit cards, personal loans, home loans, car loans, and bank overdraft.

The CIBIL Credit report is divided into 6 parts: 

The CIBIL Score: This is the part that shows your credit score, which determines your creditworthiness. 

Personal Information: This part contains information about your name, date of birth, PAN card. It can be any of the following:

  • Former and current addresses
  • Your date of birth 
  • Social security number
  • Your correct phone numbers
  • Credit accounts

Contact Information: All your contact both previous and present address and every contact detail

Employment Information: In this section, all your monthly or annual income details are recorded as reported by lenders.

Account Information: This part talks about all your credit facilities, the type of credit facilities, and name of lenders, account number, ownership, loan amount, date opened, last payment date, monthly payment records for up to 3 years of payment.

Inquiry Information: This part details on your 'hard inquiry' made by lenders, the purpose of the inquiry and the amount enquired about.

Importance of CIBIL while Looking for Loan

Credit Information Bureau (India) Limited, (CIBIL) is the number one stop place for lenders. Your CIBIL score is the first thing that lenders check when evaluating your loan application. The higher your CIBIL score the better your chances of getting approval for your loan or credit card. With the CIBIL report, you can check for yourself if you are eligible for loan or credit card application.

Frequently Asked Questions

How do I update my CIBIL report if I have finished paying/ paid off my loan and is not showing in my CIBIL report?

CIBIL update their report every 30-45 days as they get an updated report from Credit Institutions. Your CIBIL report may not reflect payment made in less than 30-45 days, but as soon as your lender submit their monthly report, the payment will reflect on your report and if not, you can fill a dispute form to lodge your complaints.

Can CIBIL defaulter get Home Loan?

It is always good to check your CIBIL Credit report before applying for a loan. You must ensure that your credit score is up to date with your credit history. Although, many banks do not accept CIBIL defaulter for a loan, while some lending institutions that provide loans to CIBIL defaulters charge a high-interest rate. 

What is a good CIBIL Credit score?

CIBIL score is a 3 figure that ranges from 300 to 900. The closer your score is to 900 the better your chances to get approvals for loan or credit card. When you have credit score of about 750, you stand a better chance to qualify for loans or credit card.

What factors can affect CIBIL score?

Here are the factors that may affect CIBIL credit score:

  • Multiple application for a loan
  • Utilization of credit limit
  • Term of loan servicing
  • Repayment history
  • Higher credit limit

Can loan rejection affect the CIBIL score?

Whenever you apply for a loan, the first thing the lender does is to check your credit report and if your credit card/ loan application is not approved. It will be recorded on your report and if you go and apply again with another lender, the previous report will be seen on your record, which may affect your credit score.

Will checking my CIBIL report affect my score?

Whenever you check your CIBIL report, it is referred to as 'Soft Enquiry' and this does not affect your credit score in any way. It is only when lenders access your credit report that can affect your score.

Will pre-closure of loan affect my CIBIL score?

When lender inquires on your credit report, pre-closure of personal loan will be seen on your record. Seeing this payment record gives you a chance to be approving for loan or credit card.

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