CIBIL stands for Credit Information Bureau India Ltd. It is the highest agency in India providing credit reports and ratings to individuals and businesses. It is the only one of about 1000 companies in the world with an ISO 27001 rating, which is the highest security standard in the world.
CIBIL releases credit reports called Credit Information Report (CIR) pertaining to individuals on the basis of their past credit history, which the agency receives from leading financial institutions in India. CRISIL is one of two credit rating agencies currently operational in India, the other being Experian Credit Information Company of India Pvt Ltd.
What is a CIBIL Report?
The Credit Information Bureau (India) Limited (CIBIL) TransUnion Score is a three digit number that is a summary of the customer’s credit history. This score is generated based on the information provided in the customer’s CIR. This report contains information regarding the customer’s history of credit payment across various loans and also institutions over a period of time. However, this report will not contain information regarding the customer’s loans, fixed deposits or other investments.
Components of a CIBIL Report
A CIR will have information in detail on the credit that customers have availed such as auto loan, home loan, credit card, overdraft facilities and personal loans. A CIBIL report will contain information regarding the customer’s CIBIL TransUnion score, their personal details, employment details, contact details and account information along with enquiry details. An in-depth analysis of the report is provided below.
- The first section provides an illustration of the CIBIL score. The score is between 300 to 900 and is generated based on the information provided in the enquiry and accounts section of the report. A visual representation of the score is provided wherein the closer to the green, better are the scores. CIBIL scores between 700 to 900 are seen to be favourable. If the score is closer to 900, this is an indication that the customer will have a higher chance of repaying the loan and hence will inspire more confidence in loan providers or credit card companies in the future. The score will be written in a blue bubble within the visual representation. Another piece of information provided is ‘figures’ which indicate the amount of customers in percentage who were given loans during the previous year and who fall in a particular section of scores at the time of their loan application.
- Personal Information section contains information about the customer’s name, date of birth and sex as reported to the members of CIBIL. Other details that will be given are the customer’s PAN number, passport, voter ID and so on.
- Under the personal information section, ‘(e)’ symbol next to a particular detail implies that the value was given by the lender when the customer had applied for a credit facility.
- Contact Information contains details regarding the customer’s address, mobile numbers, telephone, and email address. This category also mentions whether the addresses were residential, permanent or official. Up to 4 email addresses and other addresses will be provided.
- Employment Information comprises of information provided by a lender for a specific credit account regarding the customer’s income at time of opening the facility for credit and also their occupation.
- Account Information is one of the most important sections of a CIBIL report. This section provides information about the customer’s credit cards and loans including the name of their lenders, type of facilities that have been availed such as auto loan, home loan, credit card and so on. In addition to this, all account numbers held by the individual is also mentioned along with other details such as if the account is jointly held or single, the opening date, date when the last payment was made, amount of loan procured, the balance currently, if any amount is overdue and most importantly a record of every month until 36 months of their payments.
- This section may or may not contain a red band at the side. If it does, it indicates that the particular section is disputed and the band is usually removed once it has been settled.
- Enquiry Information - Under this section customers can find out details regarding vendors who have enquired into their credit application. Details include the vendor’s name, type of loan, amount of loan, application date and so on.
- The last section is Consumer Dispute Remarks which can be added by customers from a list that has already been defined. These remarks will be available on the report for a year and every time the report is accessed by any particular credit institution, this will be displayed.
The above sections are generally the ones present in a CIBIL report. Each component is important and explains the credit situation of the customer in simple terms.
Importance of CIBIL reports
A CIBIL report is a highly valued credit report that helps banks and financial institutions analyse a person’s credit worthiness based on his/her repayment discipline and borrowing history. Major importance of CIBIL reports are:
- A unified report with all your previous and current credit history.
- CIBIL reports form the basis of releasing loans to a borrower.
- Helps in staying clear of debt traps.
- An exhaustive report to help you nurture better financial discipline.
- Better score on the credit report provides leverage when negotiating interest rates.
Types of credit reports
Credit Information Report (CIR) – This report is available for individuals and contains all their credit history, and a statistically derived figure called credit score. A CIR is a major document which any potential lending institution will look at before processing your loan or credit application.
CIR consists of various sections detailing your credit history. Major attributes of a credit information report are outlined below.
- Payment history
This section shows your credit repayment history in the past 3 months including loans and credit card payments. DPD (Days Past Due) shows the number of days by which you delayed a payment.
- Current outstanding balance
This shows all your current credit due to be repaid. This helps in realizing where you stand in terms of EMI payments, and if you can avail more credit or not.
This section lists all the enquiries made about your credit score in the recent past. A high number of enquiries is a red flag. Potential lenders may view it as desperation for credit, also possibly because you were not a suitable candidate and had to approach multiple lenders.
- New credit facilities
In this section, you can see recent credit sanctions in your name.
A CCR is a report outlining a company’s credit history, consolidated from the data forwarded by various banks and financial institutions in India. While CCR doesn’t substitute credit ratings for businesses provided by an approved agency, it is still an essential component when loan applications are processed by an institution.
The primary difference between a credit rating and a company credit report is that the latter is drawn up from data directly submitted by banks, while credit ratings are generally solicited by a ratee and consequently issued by a relevant credit agency after evaluating related documents and interviewing company’s management.
CCRs are typically used by lenders to make quick, informed decisions on loan approvals. A good CCR can be used to get better terms on credits from business partners, being testament to a company’s strong financial standing.
How to get a CIBIL report
Online CIBIL report: To get your CIBIL report online, log on to the official CIBIL website and click on the ‘Know Your Score’ button.
- You will then be directed to an online form where you will be required to fill in details such as name, date of birth, income address, contact number, identity proof, previously availed loans and other relevant facts.
- On filling and accepting the form, you will be directed to the payments page, where an amount of Rs.470 will have to be paid. This can be done via a debit card, credit card or netbanking.
- On paying the amount, you will be redirected to an authentication page. Here, 5 questions pertaining to your credit history will have to be filled out. Answering at least 3 correctly will authenticate your identity. You will receive the credit report within 24 hours in your email address.
- If authentication fails, you can send a hard copy of the application duly filled out along with your address proof and the id generated by CIBIL. You will then receive the credit report by post at the address provided by you.
Free credit report: Free credit reports are not available from CIBIL. However, banks get a brief credit report when you apply for a loan, which you can then request for viewing. But this is highly unadvisable, as the number of enquiries will adversely affect your future credit issuance in case the loan application gets rejected.
Difference between CIBIL reports and CIBIL scores
A CIBIL credit report is an exhaustive report detailing all your past credit transactions, both borrowing and repayments from/to banks and other financial institutions. A credit score, on the other hand, is generated on the basis of the credit report and is a statistical figure ranging from 300 to 900. It is derived through advanced statistical analysis of a credit report.
Maintaining a high credit score is imperative to getting more credit in the future. As such, you should ensure that your credit report presents a positive outlook that translates to better scores. If your credit report is left wanting in a few segments, then you should proactively work toward making it better by repaying debt on time and maintaining a positive future outlook on it.
FAQs on CIBIL/Credit ReportQ. How do you correct errors in your CIBIL report?
RBI has made it mandatory for banks to comply with an individual's desire to access his or her credit report. If a bank declines a credit card or loan application, you can ask for the control number of your credit report. You can then contact CIBIL at [email protected] and communicate details of errors in the report.Q. Do I need a form to apply for a credit report?
Yes, you need to apply for credit reports using forms published by CIBIL. You can get these forms from their website.Q. I don’t want my CIBIL TransUnion Score, just the credit report. Is that possible?
Yes, if you want just the credit report then you can apply for it without having to take the TransUnion score along with it.Q. How long does it take for the credit report to reach?
It generally takes 10 days for your credit report to be processed and dispatched and that is done only once CIBIL has received your application form, the supporting document and the payment for the report.Q. What are the documents required for the credit report?
Along with the application form, you will need to send an ID proof and an address proof. This applies even to companies, in whose case you will have to send the ID and address proof of the authorised signatory.Q. Is there any time stipulation on when the supporting documents should reach CIBIL?
Yes. The supporting documents, ID and address proof should reach CIBIL within 7 days of your application for the generation of a credit report.Q. How will the report be sent to me?
Your credit report will be sent to you via the postal service or via a courier service approved by CIBIL.Q. What happens if I am not there to receive the report?
The delivery service will make only two attempts to deliver the report at your address. If you are not there to receive it a second time then it will be returned to CIBIL and you will have to apply for the report all over again.Q. What happens if I have made mistakes on the application form?
CIBIL will tolerate up to 3 mistakes on the credit report. If you make more than 3 mistakes then your application will not be processed.Q. What if I send the wrong details by mistake?
If your details are wrong but match another person then the report will be generated and sent to them at your cost.Q. What happens if the address in my CIBIL account and the address proof don’t match?
If your address proof does not match the one that CIBIL has on record then your application will not be processed. You can update your address by sending KYC documents along with any other supporting documents needed.Q. How can I pay for the credit report?
You can pay for the credit report using a demand draft, credit card, debit card or through net banking.
News About CIBIL Report
CIBIL plans to involve social media transactions into credit score
The oldest and the biggest credit bureau of the country, CIBIL is in talks with the government to broaden the purview of the Credit Information Act which will allow other sources of credit information to determine credit score. This will be over and above the traditional information channels that CIBIL currently employs to calculate the CIBIL score for customers.
Digital transactions now form a huge part of the overall financial transactions made by customers. Including transaction history of the same may lend valuable insights about the financial health as well as credit worthiness of an individual.
21st March 2016
Credit Information Companies in talks with RBI to cap credit reporting duration
CIBIL, India’s leading Credit Information Company (CIC), is in talks with the central bank to revise stipulations pertaining to the applicable duration for reporting of credit information. Currently, data is maintained and reported for a period of 7 years at least. However, the regulations as per the Credit Information Companies Act doesn’t stipulate a maximum term for reporting credit data. This results in some CICs maintaining and reporting data for periods up to 25 years. CIBIL and other CICs are of the opinion that this can prove detrimental to credit seekers who remain adversely affected by negative but outdated information. They are also of the opinion that capping the maximum reporting period to 5 years will satisfy the need to assess a person’s creditworthiness.
In addition to concerns over current regulations, CICs are also raising the subject of spreading credit information and reporting awareness among the general public, possibly through campaigns.
2nd September 2015