CIBIL Report and CIBIL Score are an integral part of the loan approval process. It is just not sufficient to know the CIBIL Score and the content of the CIBIL Report. How to read the CIBIL Report and how to read the CIBIL Score are equally important. Browse through the article to understand how to read CIBIL and the factors that need more attention.
Knowledge of how to read CIBIL Report is as important as being aware of the CIBIL Score. You should know the attributes that constitute the CIBIL Report and how each factor under the attributes can impact your credit score. If all is well and your score is in the top bracket then, not to worry. But the problem arises only when your score scales down. At this juncture, you should be aware of the contents of the CIBIL Report and how it can impact the score. This you will understand only when you know how to analyse the Credit Report, what has impacted your credit score range and how to improve the CIBIL Score.
A CIBIL report contains an individual’s account information and enquiry information. The information contained in these two attributes are
Account Information contains the following details of your credit facilities:
This information is the basis for deciding your repayment ability. It will give the lender a fair idea about your debt ratio and the payment history. Checking this attribute is highly essential before you go for a loan.
Now, what is that you will have to closely scrutinise under the Account Information Section and how to read CIBIL Report? Details are given below.
The lenders write off an account when the repayments are not made continuously for a period of 180 days. Account settled means a partial amount in consensus with the lender is paid as against the total outstanding in the account. This will be reported to the Credit Information Bureau and will find a place in your credit report.
XXX against DPD for any account implies that the information for that month has not been provided. The number under DPD for any account indicates the number of days the loan amount is past the due date. For instance, 60 means the loan amount remained unpaid for 60 days, and 000 means the repayment is on time.
Enquiry information consists of
Too many enquiries listed in your credit report impacts negatively on the score as it interprets your hunger for credit.
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You access the CIBIL website and download your CIBIL Report. You will first see the Credit Score and will feel satisfied if you have a top CIBIL score range, i.e., over 750. But do you know that there is much more to just checking the Credit Score on downloading the Credit Report? You should also know what constitutes the CIBIL Report and how to read the CIBIL Report.
Here is a step by step process to read the different components of the CIBIL Report
#1. Credit Score:
A valuation of your financial capability with the information in the Credit Report is the Credit Score. The lender evaluates your creditworthiness depending on the extent of the score allotted. The score will range from 300 to 900, and a credit score above 750 is considered a top CIBIL score range. If you do not have a credit history, then the score will be NA or NH. The required CIBIL Score for personal loan is 750, and the CIBIL Score required for home loan will be between 650 and 750.
#2. Personal Information:
This is the second section and contains the Name, ID number of any of the Government Identity Cards, date of birth and gender. The information will be as provided by you in your loan application.
#3. Contact Information
All your contact information like mobile number, address both present and permanent, email ID. It also contains a history of the information of the various contact address you have changed over the years.
#4. Account information
This is the most important section as the credit score largely depends on this information. This section consists of information about your various credit facilities in detail, namely:
Depending on the payment pattern, the status of the account could be.
The most preferred status of the account by lenders is the Standard status.
A red box with an alert indicates that that particular account information is disputed. The date of dispute will also be mentioned.
Details of the number of loan applications submitted along with the date of the application, loan amount, the name of the lender. Every time a loan application is submitted, a CIBIL Report is drawn by the lender to do a CIBIL Score check which will be recorded in the CIBIL Report. Too many enquiries within a short span reflect your appetite for credit, which is not a good sign.
Additional Reading: What is the minimum cibil score?
The Credit Score of all the CIBIL rating agencies is based on the information contained in the Credit Report. The credit score range is between 300 to 900, and the good CIBIL score range is 750 and above. When you do a credit score check online and find it low, then it means the loan approval chances are hampered. You should have a knowledge of the components of the credit report and how it impacts your score if you want to work towards improving your score. The key components of the CIBIL Report are
CIBIL Score: A three-digit numeric representation of your financial health and ranges from 300 to 900. A score closer to 900 is considered good.
Personal information: It consists of your name, gender, date of birth and number of any government identity card
Contact information: Comprises contact address, both current and permanent, email ID, mobile number as shared by you.
Employment information: The information regarding your income, type of occupation, employer’s details as shared by you while applying for a loan.
Account information: This is the most vital information and carries the maximum weightage. Details of the number of loans availed, type of credit, name of the lender, loan amount, date of opening the loan account, date of closure of a loan account, outstanding loan amount, the repayment pattern, overdue amount, the days past due, and the status of the account.
Enquiry information: The lenders draw a credit report when you approach them for any form of credit. This enquiry will be recorded in the credit report along with the nature of the enquiry.
Additional Reading: How to get instant loan for low cibil score?
CIBIL Score is computed on the basis of the components in the Credit Report. It is mainly based on the information in the Accounts and Enquiry Section of the Credit Report. A weightage is attached to each component in the Credit Report for finally allotting the score.
Payment history: This is about how you have handled the debt obligation in the past. The major weightage, i.e., 30%, goes to this factor.
Type and length of credit: The type of credit you have availed of and the duration of the credit history carries 25% weightage.
Credit Exposure: The total amount of loan carries another 25% weightage.
Others: Other factors like credit utilisation limit and credit enquiries carry 20% weightage.
Additional Reading: How to check cibil defaulters list?
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The CIBIL Score range is between 300 to 900. But the CIBIL Score Range 750 to 900 is considered as a good Credit Score Range. The reason being it depicts sound financial health, responsibility towards debt obligations and credit utilisation. It indicates the overall creditworthiness of the individual.
Additional Reading: What is cibil grievance?
To improve the CIBIL Score in CIBIL Report:
Additional Reading: What is cibil dispute?
You can get a 900 CIBIL Score by
If you have to clear bad credit history, you will have to
CIBIL rank is derived from the CIBIL Company Report, and the rank ranges from 10 to 1, where 1 is the highest rank. The ways in which you can improve your CIBIL Rank is
You should get a regular review of your CIBIL score and check for accuracies in personal and account information. If any discrepancy is unearthed, you should get it resolved at the earliest to maintain a good score.
CIBIL report is prepared by the Credit Information Bureau on the basis of the credit information received from various financial institutions. You can only view or download the CIBIL report by accessing the official website of CIBIL.
CIBIL Report is a consolidated record of your credit transactions that include your credit score, your past credit transactions, your repayment behaviour, the type of credits you have availed of, the overall credit exposure, the loan account status, employment details and the number of loan enquiries you have made in the near past.
The 10 digit number on the extreme right-hand top corner of the CIBIL Report is the Control Number. It works as an identification number whenever a dispute about a particular credit report is raised.