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The Credit Information Bureau (India) Ltd, better known as CIBIL, is the premier agency for providing credit reports and scores pertaining to individuals. CIBIL sources financial data of individuals such as loan and credit card information from leading banks and other financial institutions in India. This data is then presented in the form of a CIBIL credit report, also known as a Credit Information Report (CIR).
CIBIL was incorporated in 2000 and has continued to expand its presence throughout the country. It is backed by TransUnion International and Dun and Bradstreet, which are major global credit bureaus and agencies
| Tips to have a great CIBIL Score | How to Improve CIBIL Score | CIBIL Score Range |
| Check Your CIBIL Score Online | Factors that Affect CIBIL Score | CIBIL Score FAQ's |
The Credit Information Bureau (India) Ltd, popularly known as CIBIL is a Reserve Bank of India (RBI) authorised credit agency. It offers CIBIL scores and CIBIL reports for individuals. A CIBIL score is generated by the bureau after considering an individual’s detailed credit information. The agency also offers credit report services to the banks and other NBFC (Non-banking financial companies). A CIBIL score is a three-digit number between 300-900, 300 being the lowest, that represents an individual’s credit worthiness. A higher CIBIL score suggests good credit history and responsible repayment behavior. CIBIL scores are calculated on the basis of at least 6 months of historical financial data of an individual. The data is fed into an algorithm with 258 different variables; each with a different weightage.
A CIBIL Score is a numeric summary of credit history that is calculated based on the following factors:
| Track Record of Past Payments |
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| Previous Settlements, Defaults, Write-offs |
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| Loans as Proportion of Income |
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| Secured Loans vs. Unsecured Loans and credit cards |
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| Loan Equities |
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Here is how you can check your CIBIL score:
A CIBIL score of 750 and above is considered as ideal. It is important to have a high CIBIL score as it is useful when you are applying for a loan or a credit card. Keeping your CIBIL score on track since the beginning of the year can help you increase the chances of getting a loan approved easily. Maintaining a healthy CIBIL score is extremely important. Here are some important tips to have a great CIBIL Score.
It is important to have a high CIBIL score as it helps banks decide whether to extend a certain amount of credit to you or not. A good CIBIL score increases your chances for an easier credit approval. Here are five simple and effective ways that will help you improve your CIBIL score.
A CIBIL score ranges from 300 – 900, 900 being the highest. Generally, individuals with a CIBIL score of 750 and above are considered as responsible borrowers. Here are the different ranges of a CIBIL score.
NA/NH: If you have no credit history, your CIBIL score will be NA/NH which means it is either “not applicable” or no history”. If you have not used a credit card or have never taken a loan, you will have no credit history. You might want to consider taking credit, as it will help you in building a credit history and get access to credit products.
350 – 549: A CIBIL score in this range is considered as a bad CIBIL score. It means you have been late in paying credit card bills or EMIs for loans. With a CIBIL score in this range, it will be difficult for you to get a loan or a credit card as you are at a high-risk of turning into a defaulter.
550 – 649: A CIBIL score in this range is considered as fair. However, only a handful of lenders would consider offering you credit as this is still not the best CIBIL score range. It suggests you have been struggling to pay the dues on time. The interest rates on the loan could also be higher. You need to take serious measures to improve your CIBIL score even further for better deals on loan.
650 – 749: If your CIBIL score is in this range, you are on the right path. You should continue displaying good credit behaviour and increase your score further. Lenders will consider your credit application and offer you a loan. However, you may still not have the negotiation power to get the best deal on the rate of interest for loan.
750 – 900: This is an excellent CIBIL score. It suggests you have been regular with credit payments and have an impressive payment history. Banks will offer you loans and credit cards as well considering you are at the lowest risk of turning into a defaulter.
CIBIL credit ratings can be checked online by following a few simple steps, as outlined below.
Read More About : CIBIL Login
A CIBIL score is made up of four main factors. Each factor has a different weightage. Let’s take a look at the factors and how they can affect your CIBIL score.
| Payment History | 30% |
| Credit Exposure | 25% |
| Credit Type and Duration | 25% |
| Other Factors | 20% |
In order to maintain a high score, you need to be prompt with your monthly credit card bill payments as well as loan EMIs. If you are delaying your payments or are defaulting on EMIs, it will hamper your score. Irregular payment behaviour also suggests that you are struggling to manage your credit health. A recent CIBIL analysis (reported by the Financial Express) revealed that 30-day delinquency can reduce your score by 100 points.
Having a loan or multiple credit cards do not negatively impact your CIBIL score. However, if your credit utilisation ratio is high, it will bring your score down. Ideally, you should only spend up to 30% of your credit limit. A higher credit utilisation ratio suggests you have been increasing your debt and are likely to turn a defaulter. Therefore, it is advised to keep a tab on your credit expenses and make sure you are not maxing out your limit.
The age of your credit history is the number of years that have passed since you opened your first credit account. CIBIL considers the average number of years for which you have been holding a credit account. Having a good balance of secured (car or home) loans as well as unsecured (credit card) loans helps to boost your score. When you have a healthy credit mix, it suggests that you have a good experience in handling different types of accounts. A long credit history with good repayment behaviour makes you a low-risk borrower. It is better to start building your credit history at an early stage as it will be helpful later at the time when you’re planning to buy a house or a car.
Credit inquiries is another factor that is considered while calculating your score. Every time you apply for a loan or a credit card, the lender will check your credit report. This is called a hard inquiry. If you make multiple credit requests within a short period, it will bring your score down. Therefore, it is advised to spread your credit applications throughout the year instead of making them all at once.
Building a CIBIL score is a slow process. You need to show consistent repayment behaviour and handle the available credit in a responsible manner to maintain a good score.
To Know More Visit : Factors that affect CIBIL Score
To Know More Visit : Tips to increase CIBIL Score
A credit score measures your creditworthiness. It helps lenders take a sound decision regarding your ability to pay back the borrowed credit. When you have a high credit score, lenders like banks and non- banking financial companies (NBFC) will be willing to offer you a loan or a credit card. A credit score is calculated after taking into consideration several factors like payment history, credit exposure, the age of credit history, type of credit and total debt.
Banks, NBFCs or licensed lenders with whom you transact, submit all your account details to credit rating agencies. Rating is done according to the criteria set by each agency. Your credit scores from two different credit bureaus can vary as each bureau have their own scoring model. Therefore, the variation in your credit scores is normal as well as valid. However, there are several myths that revolve around your credit score.
Credit Report cannot always be accurate and there is a good chance that it will have errors. Therefore, you should check your credit report periodically to see if there are any wrong credit entries or missing records of a loan instalment. It is also possible that you are a victim of an identity theft hence, it is not safe to assume that your credit report is error-free.
As per the guidelines of the Reserve Bank of India (RBI), you are entitled to get one free credit report that contains your credit score, in a financial year. It is mandatory for all the credit bureaus in the country to offer one free credit report to consumers.
One of the factors that can bring down your credit score, is cutting down the length of your credit history. Hence, it is advised to keep all your old credit cards open even if you are not using them. By keeping the cards open, you get a long credit history that helps you improve your credit score.
A majority of people do not own or use a credit card, as they believe that they will still have a good credit score. It must be noted that, if you do not use your credit card, you will not have a credit history and therefore credit bureaus will not be able to compute your credit score.
A credit utilisation ratio expresses the relation between the amount of credit granted and the actual credit usage. Anything between 30-35% is considered feasible. For instance, if the sanctioned credit limit on your credit card is Rs.100,000, the actual usage should not exceed Rs.35,000 to avoid the consequences of being considered an unsafe financial behaviour.
Lenders trust consumers with a high credit score as they are less likely to turn into a defaulter. However, each lender has a different policy and some of them might still consider your credit card application even if you don’t have a high credit score.
Credit card companies and lenders like to observe how effectively you manage various categories of financing. Build your Credit Score through a portfolio of properly balanced secured long-run loans such as housing mortgages and auto loans; and unsecured revolving mortgages like personal loans and credit cards. For instance, making credit card payments in full in lieu of utilising the facility of revolving credit is considered positive.
This is one of the most common myths associated with your credit score. It must be noted that even if you check your credit score multiple times, it will have no effect whatsoever on your credit score. When you check your own CIBIL score, it is termed as a soft enquiry and it is completely harmless. On the contrary, when your bank or lender initiates your credit check, it is considered a hard check and this has a negative impact on your credit score.
Bankers would want to see your previous repayment history. It is tough to build credit with no credit history. Staying away from any type of debt completely might not always be in the interest rate of lending companies. The evidence for previous payments can put you on a higher scale.
Standing as a co-applicant seems reasonable as long as you are sure that the principal borrower can repay debts. The payment obligation will be shifted to you if the principal borrower fails to make payments. It impacts your credibility.
All the four credit bureaus in the country viz, TransUnion CIBIL, Equifax, Experian Credit Information Company and High Mark Credit Information Services, have the access to your credit records. These credit bureaus are licensed by the RBI. No other credit bureaus can access your credit records.
To obtain your credit score and credit report you will need to contact the credit rating agency in India, CIBIL. They will be charges involved to obtain a credit score and credit report. Any individual wanting this report will need to pay an amount of maximum Rs. 500 to obtain this report, the application process with payment applies to both individuals and institutions. Let’s say a bank or financial institutions needs your credit report with your score to check your loan eligibility, even they will need to make a payment for that copy. There are a few websites that will promise to give you, your credit report and score for free, but will ask you to sign up with them or become a member of their website etc.
A CIBIL report, also known as a Credit Information Report (CIR) is a document listing all your borrowings and repayment histories. The CIBIL score or rating is derived out of this data as well as other variables that affect your financial position.
CIBIL scores have become the benchmark for credit worthiness in India. While CIBIL was the first Indian credit bureau, other international players have also started providing credit scores in recent years such as Experian Credit Information Company India Pvt Ltd. The importance of credit checks should not be undermined.
The credit report is a report that includes your credit score as well as other details on all your financial transactions related to credit. Your credit score is just a part of the report, which has a 3-digit number which will be anywhere in the range of 300 - 900. The credit score is a depiction of your creditworthiness, while your report will include payment history, number of loans, your outstanding balances of any loans, total of your credit limit, loan details of all loans taken from a diverse pool of lenders. The credit report is more like a report card for your credit, and the credit score is like the percentage you get on your report card. The higher your credit score is, the better it is for you. An average score of 750 is considered good for lenders to provide you with good deals and better rates of interest.
With the launch of CIBIL Score 2.0, banks will now be able to gauge the creditworthiness and risk of new borrowers. This system provides ranks to customers who have a credit history of less than six months. The risk index is from 1 to 5, with 1 being the highest on the index and 5 being the lowest.
Banks in India can check this database to assess and evaluate a potential borrower and whether the loan should be approved or not. According to the COO of CIBIL, this new credit scoring methodology can help banks identify 10% increment defaulters easily.
Here’s how you know where you rank on the new scoring version.
If your rank is ‘NA’ or ‘NH’:
If your rank is between 1 and 5:
To get approved for loans, you will have to maintain a good credit history and a clean financial record. Even though your history is less than six months old, there are certain steps you can take to improve your score and thus, your creditworthiness.
Clear your outstanding balances on time
There’s a reason you’re told frequently to pay your dues on time. One late/missed payment reported on your credit history can bring down your score. When you pay your bills before the dues date, you avoid late payment charges and you maintain a good score as well. You also don’t have to deal with compound interest rates.
Maintain a low credit utilisation ratio
It’s always important to have a balanced mix of secured and unsecured credit. If you have multiple credit cards and personal loans, it’s viewed negatively by your lender. You could be viewed as a credit-hungry borrower who is unable to manage their debt.
Minimise your applications
If you’re constantly applying for new credit, lenders will consider you a risky borrower. This shows that you’re not good at managing your finances. Multiple inquiries within a short span reflected in your report will cause a dip in your score.
Review your credit report
Sometimes, lenders or financial institutions may share inaccurate data with CIBIL. This data can affect your score negatively. It’s crucial to go through your report with a fine comb so you can dispute errors, if any.
Lenders will submit all your financial information every 30 to 45 days to CIBIL. This will include your payments, your outstanding balances, delayed payments, and more. If you have borrowed finances from a smaller lender, they might share your information on a quarterly basis.
Once CIBIL receives this data, they will process it so it reflects on your credit report. Now, if you choose to buy your CIBIL report within 45 days of paying your last dues, you may not receive the updated version. Your report may show incorrect current balances or amounts due.
What you should do is look for the ‘Date Reported’ section in your report. If the information submitted by your lender is older than two months, and the payment details are still not displayed correctly, you should raise a dispute for the same.
It’s advised to wait for at least 45 days before you look for your newest report or raise a dispute. Each lender may share their data in their own time. So, even if you clear all your dues for a certain period, these details will not show up on your credit report immediately.
Now let’s say you have the latest report in hand, but the data is inaccurate. So, you decide to raise a dispute with your lender. For example, you made your credit card payment, but it hasn’t reflected in your report. When you’ve resolved this issue, your lender should ideally share the updated data with CIBIL. If they haven’t, there will not be any change in your report or score. You will then have to contact your lender to submit the details to CIBIL. This is because CIBIL cannot change your report unless your lender reports it. Keep in mind though, if the dispute has been resolved in your favour, it will take up to 90 days to reflect in your credit report.
It’s important to thoroughly check your CIBIL report and raise disputes if you find any discrepancies.
Banks, as part of their due diligence process, gauge the creditworthiness of individuals based on credit scores. The information listed on your credit report includes several variables that CIBIL uses to set your credit score. CIBIL score, therefore, reflects the extent of the probability of a default. An individual’s credit history is submitted to CIBIL by banks and financial institutions on a monthly basis.
A high CIBIL credit score essentially means less probability of a default. A low CIBIL credit score reflects high probability of a default.
Log on to the CIBIL website and click on the ‘know your score’ tab to get a personalized credit score. Fill an online form which requires you to include details such as your name, date of birth, income, identity proof, address and phone number, in addition to the loans taken by you. Following payment of a certain sum, you will have to submit authentication details which include questions based on your credit history. After authentication, your credit score will be emailed to you.
If you have a zero outstanding balance on your old credit card, there is no reason to unduly worry about it and close it. If you have a credit card with a clear payment history, it will not only reflect your responsible credit behaviour but also keep your utilization rate low, which impacts your score positively.
There are many who avoid loans like the plague, hoping that their CIBIL score will then be perfect. Nothing can be farther from the truth. If you do not borrow, you do not have a credit history and, therefore, no credit bureau can assign a score. Consequently, you might find it difficult to get a loan. Timely repayments are of seminal importance to ensure that your score remains above 750.
The fact is, CIBIL does not furnish your CIBIL report or score without levying a fee for the same. There are online websites and tools that offer to estimate your credit score based on certain input parameters but this score is just an estimated figure and not your actual CIBIL score. Actual score can only be obtained by paying the required fee.
Credit score is a distinct numeral assigned to each individual based on analysis of his/her credit report. A higher credit score signifies a health credit history and a lower score signifies a bad credit history. Any score between 700 and 900 is considered good while that below 700 needs to be improved in order to come in the good books of lending and banking entities. You CIBIL score depicts your credit-worthiness as a customers and is hence an important numeric figure. This score is looked up by banks when you apply for any credit channel like loan or credit cards.
CIBIL score is calculated by the Credit Information Bureau India limited in conjunction with various registered credit bureaus of the country. The score takes into account your payment history, payment pattern, your existing credit channels and the amount of credit that you own.
The CIBIL Score will change based on the various factors such as any change in loan/credit account, credit repayment history, missed payments, etc. The score can also change when your lender carries out a hard check on your credit report. The information collected from various financial institutions and government agencies is received by CIBIL on a monthly basis. These financial institutions and government agencies are liable to provide credit/loan information of an individual to credit bureaus across India. Based on any information regarding a change in your financial creditability will cause the change in your credit score.
There are three other credit bureaus in India apart from CIBIL. TransUnion CIBIL Limited is the oldest credit bureau that has been providing the individual credit score to lenders such as banks to check repayment capabilities of an applicant. The credit score generate by TransUnion CIBIL Limited is called a CIBIL Score, however, the credit reports and scores can also be taken from the other three credit bureaus such as - Experian, Equifax, and CRIF HighMark. They collect the financial information of an individual from various financial institutions and establishments to calculate and generate the credit scores and reports.
Credit Information Report (CIR) is the complete summary of your credit history based on the last 5-7 years of credit and loan accounts. The CIR also contains personal and credit/loan account details including the inquiries’ made by lenders for your credit/loan application. The CIR is a record of your EMI repayments and/or credit card payments. The CIBIL Score is a part of the CIR. The score is an indication of your credit/financial health that is calculated based on the various factors that prepare the CIR.
Your CIIBL Score can only be accessed by CIBIL Members such as certain banks, your lender, you, and other authorized establishments. These members are required to access the credit report/score only when you apply for a loan or a credit product. Apart from the banks, you can access your credit report/score by making a payment either to CIBIL or to any other credit bureaus.
You can request for your CIBIL report by visiting the www.cibil.com. You will need to enter personal details such name, PAN card number, date of birth, gender, etc, clear the personal verification process, and make a fee payment in order to access your credit report. CIBIL provides credit reports online as well as a physical copy of it that is sent to your address. Currently, you can access your CIBIL report for free by requesting for it under the once a year 'free' offer.
PAN Card is one of the unique identifiers that is related to all types of financial activities. Whether you are opening a bank account, transacting for a higher value, or taking a loan or credit card, PAN card is required for all these types of application. The credit bureaus in India use PAN card as the major tool that helps in identifying individuals when they are requesting for their credit report. If you are planning to obtain your credit report/score, make sure that you have your PAN card details with you.
If you are requesting for your CIBIL for the first time in a year, you can get it for free. CIBIL offer once a year free credit score upon requests. There are no other websites that can provide you with the CIBIL Score for free. You will need to visit the CIBIL website www.cibil.com in order to request for your credit score/report.
The CIBIL Members such as banks and other government agencies provide financial information of an individual on a monthly basis to CIBIL in exchange for the access to the credit reports and score prepared by CIBIL for determining their loan/credit applicant's financial credibility. CIBIL collects your financial information related to loans and credit accounts from your bank.
No. When you requesting for your own credit score/report, this is considered to be a soft check that doesn't have any impact on the credit score. But when you apply for a loan/credit, and your lender carries out a check, that'll be considered as a hard check. A hard check can impact your credit score negatively. If your loan application gets rejected, it is advisable not to immediately check with other banks, more hard checks can cause further damage to your credit health.
While reviewing the loan/credit applications, it becomes essential for the banks to consider the repayment capability of an individual. The credit score and report helps the lenders determine the repayment capabilities of an individual. By referring to the credit score, the banks can identify the applicant repayment habits and decide whether the application can be approved or rejected. The CIBIL Score can be one of the deciding factors involved in determining the interest rate, credit limit, and other essential parts of the loan/credit account.
A credit report will contain details of your credit and loan accounts. Even if you have closed a credit/loan account in the past, the credit report will include details of that account. The report will show the total credit/loan amount, EMI details, missed/late payment, lender’s name, and other related information. There could be instances where the details entered in the credit report are incorrect, you are advised to get in touch with the credit bureau to remove the incorrect details.
If you have reviewed your Credit Information Report (CIR) and found errors or incorrect entries, you can get in touch with TransUnion CIBIL Limited directly to get it corrected. TransUnion CIBIL Limited will review your request and make necessary changes on receipt of a nominal fee. If you are planning to apply for a home loan, credit card or any other loan/credit product, you are advised to review your CIR so you can fix errors and get your credit score/report updated. You can file a dispute for the scrutiny of the information on your CIR, the credit bureau will carry out a check and update the CIR accordingly.
CIBIL is not allowed to delete or make any changes to the Credit Information Report (CIR) independently. CIBIL collects information from banking as well as non-banking financial companies to prepare CIR. The CIR might have incorrect entries or incorrect details that are collected from the CIBIL members, in that case, once you contact CIBIL to rectify the error, they will obtain clearance from the members along with necessary documents to make changes to the CIR. Hence, you are advised to review your CIR periodically to ensure your credit score is up to date.
CIBIL 2.0 is a new scoring model that TransUnion CIBIL Limited uses to calculate the credit report for individuals. Individuals with a new credit history of 6 months or lesser are assigned a score based on the risk factors involved in lending to new borrowers. The CIBIL 2.0 offers a risk index of 1-5 to individuals with new credit history, the higher the number, the risk of defaulting is lesser. The CIBIL 2.0 is designed to match the current economic and credit trends.
Currently, when an individual applies for a loan or credit card, the lender (bank) will carry out a credit report/check to make sure the borrower has a positive record of credit repayment. The bank may refer to any of the credit bureaus to obtain a CIR of an individual. Based on the credit score, the bank may decide to approve your reject your credit/loan application. Though the credit score is not the only factor that decides whether your loan/credit is getting approved or not, it is one of the important factors that your lender will look into. A poor credit score will have more chance of loan application rejection compared to a healthy credit score.
The CIBIL Score ranges from 300 to 900 where 300 being a bad credit score to 900 being the best. A CIBIL credit score of 750 and above is considered to be a good score and has more chances of the loan application getting approved. If your credit score is bad, there are various methods that you can use to improve the score.
The banks and Non-banking Financial Companies (NBFC) do not publish the minimum credit score required for loan approvals, however, they do look into your credit score to make their credit lending decisions. A CIBIL score of 750 and above is considered to be a good credit score, however, the approval will still depend on other factors such as loan amount, employment status, credit history, etc. It is recommended to review the credit score periodically so you can identify the factors that are improving or decreasing your credit score. A credit score that is close to 900 has more chances of a loan application getting approved.
Since banks and NBFCs are not required to publish the minimum threshold of a credit score for home loans, you are recommended to review your credit report/score and take necessary steps towards improving it. The credit score/report is a part of the loan application review, the banks have the liberty to take an independent decision based on their records as well.
CIBIL is not required to publish the record of the defaulters, however, the CIBIL CIR contains the details of the defaults of a particular individual. The details of such defaults are on record for a maximum of seven years. Any information that is over seven years old is not included in the CIR.
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