Transunion Cibil

TransUnion CIBIL, the Credit Information Bureau operating in India, has made the due diligence ordeal simpler for financial institutions. In addition, TransUnion CIBIL maintains credit information of over 600 million individuals, which is made available in the form of a Credit Report. Based on the TransUnion CIBIL Score, financial institutions gauge the creditworthiness and repayment behavior of the customer.

TransUnion CIBIL Score

TransUnion CIBIL is a credit information company that is a part of Transunion, an American Corporate Company. Transunion CIBIL is operating in India and is the first Credit Information Bureau established on the recommendation of the Reserve Bank of India Siqqique Committee. It maintains the credit history of over 600 million individuals. Various banks, NBFCs and Insurance Companies are members of TransUnion CIBIL. TransUnion CIBIL Score comprehended on the basis of the credit information collected from the various financial institutions helps majorly in keeping non-performing assets at bay. The customers will understand where they stand as far as their eligibility for credit is concerned on reviewing their TransUnion CIBIL Report. 

What is TransUnion CIBIL?

TransUnion CIBIL is a Credit Information Bureau operating in India. This is the first Credit Information Bureau that was established on the recommendations of the Reserve Bank of India. The other Credit Information Bureaus established subsequently are Equifax, Experian and CRIF.

Every bank/NBFC and Insurance Company is by default the member of TransUnion CIBIL and provides information about the credit profile of the customers once a month. TransUnion CIBIL has credit information of over 600 million individuals from over 32 million Companies. With the credit information, individual credit reports are compiled. The credit report comprises personal details like name, email id, contact address, PAN, employment details, loan payment history, the number of loans, type of loans, loans past due, credit utilisation limit, and a number of loans and credit card enquiries made.

TransUnion CIBIL Score is then awarded based on the individual's creditworthiness, financial capacity and repayment behaviour. The CIBIL Score TransUnion ranges from 300 to 900, wherein 300 is the lowest score, and 900 is the highest score. A CIBIL score ranging from 750 to 900 is considered a good CIBIL Score range and will spike up the chances of loan approval.

Features of the Transunion CIBIL Score

TransUnion CIBIL Score has become an integral part of each and everyone's credit journey. It is the key to your loan eligibility. Lenders do the due diligence ordeal, i.e., verifying your financial health and repayment capacity based on the CIBIL Score. Taking the CIBIL score lightly might deprive you of access to easy credit at times when you really need it.  

TransUnion CIBIL Score is the result of the CIBIL Report content. The CIBIL report comprises the following details:

  • Personal information like name, date of birth, contact address, PAN, Email ID,
  • CIBIL Score and Credit Summary
  • A gist of your employment details and financials as reported by the lenders.
  • Detailed information about the number of loans availed of, the number of enquiries made and the payment history.

Based on the above information, the TransUnion CIBIL awards score ranges from 300 to 900. The risk rating for different credit score range is given below:

CIBIL Score RangeFinancial Ability-Creditworthiness
300 to 599Very Poor-Highest Risk of Default
600 to 649Poor-Higher Risk of Default
650 to 699Fair-High Risk of Default
700 to 750Good-Medium Risk of Default
750 to 900Excellent-Low Risk of Default

The lenders, apart from considering the CIBIL Score Range of 750 and above as a good score range, will also look into the following aspects in the Credit Report.

  • Credit Mix: Combination of secured and unsecured loans. A good mix of secured and unsecured loans is considered prudent financial management.
  • Number of Enquiries; Too many loans and credit card enquiries made within a short span depicts credit appetite.
  • New credit card and loan additions: The number of new loan account opened and credit cards availed shows total dependence on loan and low financial health.
  • Missed EMIs: Irregular repayment pattern shows that you are not a responsible borrower and the chances of default in the future are higher.
  • Status of Credit Facility: Credit Behaviour is of utmost importance.

On scrutiny of the report for all the above aspects and the credit score, the lender will decide whether you deserve the loan or not and will take a well-informed credit decision.

With a good credit score, you will have gained the following advantages

  • Quick approval
  • Lower interest rates.
  • Longer tenure
  • Higher loan amount
  • Higher credit card limit.
  • Power of negotiation.

Additional Reading: How to increase cibil score fast?

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How to check TransUnion CIBIL score free?

TransUnion CIBIL Score certifies your creditworthiness and repayment responsibility. It is a mandatory requirement when you approach the lender for any loan or credit card. Reviewing your CIBIL score periodically is essential to maintain a good credit score. There are certain additions that can happen to your credit report without your knowledge which may hamper your credit score. To check for the accuracy of information and detection of fraudulent transactions and identity theft, credit monitoring through TransUnion CIBIL Score review is important.

Is there a way to check free CIBIL Score?.  As per RBI guidelines, all Credit Bureaus have to provide one free Credit Report in a year. So you can avail yourself of the TransUnion CIBIL Score free facility once a year. To check the CIBIL score, you will have to follow the procedure given below:

  • Access the official website of CIBIL.
  • Click on the 'Generate Free Credit Report' on the extreme top corner to the right of the screen.
  • You will be navigated to a simple application wherein you will have to give your name, contact address, date of birth, email ID, PAN or any other government identity card number.
  • Within no time, your credit report, along with a credit score, will be displayed on the screen.
  • You can download the free CIBIL Report.

With TransUnion CIBIL Login, you can get a free Credit Report. Else, some of the lenders provide the option to check CIBIL Report and CIBIL Score for free on their official websites.

Additional Reading: How to check cibil score by pan card?

How is the Credit Score Calculated by Transunion?

Nowadays, no lender approves a loan or credit card application without checking the CIBIL Score and TransUnion CIBIL Report. How does TransUnion CIBIL calculate the Credit Score? Read further to understand what goes into the calculation of the TransUnion CIBIL Score.

All Credit Bureaus have their proprietary algorithm to calculate the Credit Score. TransUnion CIBIL also calculates the CIBIL score through a special mathematical algorithm and allocates a score which is a three-digit number ranging from 300 to 900. The closer the score is to 900, the better are the chances of loan approval. The higher the score, the better are the deals. This score is based on the credit information TransUnion CIBIL receives from various financial institutions periodically, i.e., once in 30 days. The score is mainly dependant on the payment history, the duration of credit history, the credit mix, credit utilisation, and credit enquiries. Every attribute gets a percentage of the score as given below:

Past Performances: 30%

Credit Exposure: 25%

Type of Credit and Duration of Credit: 25%

Others: 20%

Past Performance: Your past commitment towards debt obligation carries the maximum weight. Delinquencies/default will have a negative impact on the score.

Credit Exposure: The number of loans and the overall outstanding liability gets a weightage of 25%.

Type of Credit and Duration of Credit: The duration of your credit history and the credit mix gets a weightage of 25%. Whether there is a good balance between secured and unsecured loans or majorly unsecured loans plays a very important role in allotting the score. A good credit mix will have a good impact.

Others: Other factors like credit utilisation, number of new loans added in the near past, number of credit card and loan enquiries carry a weightage of 20%.

The Credit Score not only impacts the credit decision but also on the terms and conditions that are associated with the loan, like the interest on the loan, quantum of loan and the loan tenure. The higher the score, the more confidence the lender will have in your repayment capacity and financial worth. So it is of prime importance to maintain a healthy score if you want to reap the benefits of a good deal.

Additional Reading: Credit rating agencies in India

Credit Score Features by Transunion

Credit Score by TransUnion mainly depicts the following:

  • Repayment track of the individual, i.e., the commitment of the individual towards past and existing debt obligations.
  • The credit exposure, i.e., the overall existing liability.
  • The duration of the credit history - The longer the duration of the credit history, the better will be the score. Keeping earlier loans open with a good payment track can work wonders with the score.
  • Type of credit, i.e., the number of secured and unsecured loans availed. If your credit history comprises a higher number of personal loans and credit cards, it can have a negative impact on the score. A good balance between secured and unsecured loans is a positive feature.
  • Credit Utilisation: A credit limit utilised moderately will have a positive impact on the credit score. Limiting your credit limit utilisation to less than 50% is a good practice.
  • Loan enquiries: Enquiries for loans and credit cards done frequently can bring down your credit score drastically as it poses you as credit hungry.

All these aspects are given a weightage, and the Credit Score is drawn. A score between 750 to 900 is the ideal score to have and will fetch you a loan with better deals.

Additional Reading: How to check cibil defaulters list?

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Difference between Transunion CIBIL and CIBIL score

TransUnion CIBIL is a Credit Information Bureau that collects information from all the financial institutions, including insurance companies, about the credit history of the customers and prepares a Credit Report that comprises the repayment behaviour, the credit exposure, credit mix, utilisation of credit and credit enquiries of the individual. 

CIBIL Score is the score allotted to the individual using a mathematical algorithm based on the information in the credit report. CIBIL Score is the numeric representation of the individual's creditworthiness and ranges from 300 to 900. The higher the score, the better will be the creditworthiness. CIBIL Score is the reflection of the individual's credit profile that depicts the financial behaviour and financial health of the individual.

Additional Reading: How to read cibil report?

How does Transunion CIBIL score affect individual borrowers?

TransUnion CIBIL assigns a credit score based on the credit history of the customer. The score ranges from 300 to 900 based on which the risk rating is done. The different credit score range that rates the risk attached is as given below:

300 to 599: Poor Score. An individual with this score range is considered as a borrower with the highest risk of default, and lenders reject the loan application out rightly.

600 to 699: Fair Score. Individuals with this score range are considered as a borrower with a high risk of default. Some of the lenders may consider a loan application with this score for secured loans. However, the quantum of loans will be much lower and the rate of interest higher. You may get a secured loan, but it will not be a good offer.

700 to 749: Good Score. The lenders will consider the income and employment stability for individuals along with the score. They will also look minutely into the reasons due to which the score has reduced. The loan, even if approved, will have a higher interest rate.

750 to 900: Excellent Score. The lenders vest the utmost confidence in the individuals with this score as far as the repayment of the loan within the stipulated time. The loan will be approved without any hitch and will also be with better offers like lowest interest rates, higher loan amount/credit limit, longer repayment tenure and will also have the power to negotiate other terms and conditions as well.

To maintain the highest score to grab the best offers.

Additional Reading: What is cibil grievance?

What reasons could lead to a low CIBIL TransUnion Score?

There are several reasons for your CIBIL TransUnion Score to deplete.

Payment history: This is one of the major reasons that could bring down your CIBIL score. Delayed EMI payment or EMI missouts and a minimum payment of credit card dues can bring down the credit score. Even a single EMI missout can bring down the credit score. But if the EMIs are consistently delayed or missed out, it can affect the credit score drastically.

Credit Type: It is imperative to maintain a good balance between unsecured and secured loans. If your credit report has too many unsecured loans and credit cards, then it can greatly bring down the score. A good credit mix is highly essential to maintain a good score.

Hard enquiries: Whenever you approach a lender for a credit card or a loan, a credit report will be drawn, which will be considered as a hard enquiry and will be recorded in your credit history. Too many hard enquiries with a short span show that you are desperate for credit. This will have a negative impact on your score.

Additional Reading: What is the minimum cibil score?

How to improve on your CIBIL™ TransUnion Score?

Practice the following diligently to improve and maintain your CIBIL TransUnion Score.

  • Pay all your credit card dues and loan EMIs within the due date. Avoid minimum due payment of credit card dues. Aim at clearing the entire credit card dues of every billing cycle.
  • Use the credit card limit moderately.
  • Minimise the number of loans by consolidating the debts.
  • Strike a balance between secured and unsecured loans.
  • Do not close old loan accounts.
  • Limit the number of loan and credit card enquiries.

Additional Reading: How to get urgent loans on bad credit?

How to contact Transunion?

You can contact TransUnion on the following telephone numbers:

91-22-6140 4300

91-22-6638 4600

FAQs

✅Is CIBIL part of TransUnion?

TransUnion CIBIL is Credit Information Bureau operating in India and is a part of TransUnion, an American Corporate Company.

✅How can I download my CIBIL report from TransUnion?

You can download your CIBIL report from TransUnion by logging in to the official website of CIBIL and following the steps given below. 

  • Once you access the website and click on Generate Credit Report, a simple application will pop up.
  •  You will have to fill in the application with details like name, address, PAN or any other Government ID number, and date of birth. 
  • After completing the application, click on the Generate Report button. You will be navigated to the payment gateway, and on making the payment, you will be able to download the CIBIL report.

✅How can I remove CIBIL write off?

To remove the write off tag from CIBIL, you will have to pay up the settlement amount and get a NOC from the lender. You should then raise a dispute providing the proof of settlement, i.e., NOC from the lender. CIBIL will get confirmation from the lender and will then remove the write off tag from CIBIL and change it to 'Account Closed.' 

✅Which CIBIL score is accurate?

Lenders find TransUnion CIBIL Score the most reliable. However, some of them rely on the score of Experian as well.

✅How can I check my CIBIL status?

You can check the CIBIL status by logging in to the official website of CIBIL. You will have to provide some personal details like name, address, mobile number, date of birth and PAN and click on the submit button. The CIBIL Score will be displayed on the screen.

✅Is TransUnion a good company?

Considering the length of existence, most of the lenders consider the efficacy of the TransUnion Score as the best.

✅Is TransUnion private?

TransUnion was TransUnion Holding Company.Inc formerly went Public in the year 2015 and started offering services to both consumers and businesses.

✅What is the TransUnion Flex?

TransUnion Flex is the flexible partnership collaboration model that comprises protection of identity, credit management and imparting financial education.