CIBIL Score and Report

CIBIL Score and Report

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.

What is CIBIL Score / credit score?

CIBIL Credit score is a numerical expression that is based on your credit files which represents your creditworthiness. It includes all the details of the credit that you have acquired throughout the years. It also shows how much credit you have taken and how you have repaid it. It will also show if you have missed making any payments or if you have settled any loan. It contains your debt and repayment history along with all your relevant details.

Credit score is calculated based on your credit report based on the intensive in-house algorithm calculations. One of the oldest credit rating agency is Credit Information Bureau or CIBIL. CIBIL scores their ratings from 300-900, 300 being the lowest. Equifax is another such credit rating agency, they score between 1 – 999 points.

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.

The other credit rating agencies are Experian and Crif Highmark. All the agencies are approved by the Reserve Bank of India and offer credit report services to the banks and the other financial institutions.

CIBIL PROCESS

Credit Score Verification

We obtain your Credit Score from the three credit agencies in India and provide advisory on improving your credit score.

Requesting Credit Report

We will apply on your behalf to the three credit rating agencies in India, requesting a copy of your Credit Report. The application will be made along with the necessary supporting documents.

Credit Report Review

Once you have received a copy of the credit report from the rating agencies, an IndiaFilings Expert will help you understand the Credit Report and provide advice on improving your Credit Score.

Rating Dispute

In case you notice any incorrect information on your Credit Report, We will help you raise a request with the Rating Agency for review and removal of incorrect information.

HIGHLIGHTS OF CREDIT SCORE CHECK

A credit report is a report prepared by a Credit Rating Agency, which contains information relating to the credit worthiness and repayment track record of an individual.
Credit Rating Agencies are companies that that provide information about an individual’s creditworthiness. India has three credit rating agencies namely CIBIL (Credit Information Bureau (India) Ltd), Equifax India and Experian India.
Credit Report’s contain information like name of the individual, age, addresses, list of credit facilities availed, repayment record and credit score.
Credit Rating Agencies uses a number of factors to arrive at the Credit Score which represents the individuals’ credit worthiness. Higher credit score implies better credit worthiness.
Credit Score changes over time based on the behavior of the individual. So, in case you are planning to request for a major loan like a home loan or auto loan, it is always good to know your CIBIL score before-hand. Otherwise, its good to keep track of your credit score once a year.

A CIBIL score can range from 300 to 900 with 300 being the bottom end and 900 being the best score possible. Here is what your score could mean.

 

0 or -1: If your score is 0 then it just means that you have no credit history created via a credit card or loans. You might want to consider taking one so that you can get a credit history going.

 

350 – 550: Alarm bells should be ringing because this is a bad score. It means you have been defaulting on payments and the chances of getting new loans/credit cards are minimal.

 

550 – 650: This is an acceptable region to be in since it indicates that you are fairly regular with your payments and can be trusted with new loans and cards. Your loan applications are also likely to be approved.

 

650 – 750: You are on the right path. You will not face too many problems with loans and credit cards and should you stick to your current habits, you could reach the best CIBIL scores too.

 

750 – 900: This is the best range to be in since it means that you are a financial guru. You are regular with credit payments are have a really good payment history. Banks will tend to be very will to offer you credit products with such a score.

FREQUENTLY ASKED QUESTIONS

A Credit Score or the CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIR. A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits.
To check account number or member details you can purchase your CIBIL Score and CIR. This report will contain complete details of your credit history across various lenders and products, enabling you to check all the aforesaid information.
A CIR has detailed information on the credit you have availed, such as home loan, automobile loan, credit card, personal loan, overdraft facilities.
Go through the glossary to understand your CIR better.
It is important to note that even if primary card holder is responsible for payments for charges incurred on both the primary and add-on credit card. Any default made in payments shall reflect in CIR of both the primary and add-on card holder.
It is important to note that even if primary card holder is responsible for payments for charges incurred on both the primary and add-on credit card. Any default made in payments shall reflect in CIR of both the primary and add-on card holder.