Today we believe in purchasing products through Loans and Equated Monthly Installments (EMIs). Banks have also readily facilitated this transition by extending easy loans to consumers. But before a bank extend a loan to you; it needs to take a decision: Would you be able to repay the interest and principal to it, or would you default? How much is the risk involved in lending money to you?
Banks rely on many factors to take this decision – it includes your income, your other loans, your previous repayment history, etc.
In the past, the banks had to collect all this information from you before analyzing it. But now, they have a readily available tool to make this decision simpler for them – your credit history or your Credit Information Report.
There are two kind of reports which you can get from CIBIL. The basic one is called Credit Information Report (CIR) which is nothing but a basic information on how is your credit history and what kind of information is there with CIBIL. And the second thing which you can get from CIBIL is your Credit Score which is called as CIBIL TransUnion Score and ranges from 300 – 900. This is number which scores your credit ranking.
What is Credit Information Report (CIR)?
Credit Information Report (CIR) provides the credit history of borrowers. It contains basic information in detail about all the credit facilities availed, past payment history, amount overdue, current status, etc. It also contains details about enquiries made by Banks/ Financial institutions for your credit report. CIBIL is India’s first credit information bureau which provides credit information report. As many as 500 different banks and financial institutions are CIBIL’s clients and they report each of their customer’s actions to them. If you take a home loan from HDFC bank, then HDFC bank reports to CIBIL about it. If there is any default in the payment of EMI, it is also reported to CIBIL and getting loans from any bank would become difficult.
What is CIBIL TransUnion Score?
The CIBIL TransUnion Score is a 3 digit numeric summary of your credit history. The Score is derived by using the details found in the “Accounts” and “Enquiries” sections on your Credit Information Report (CIR) and ranges from 300 to 900 points. The closer your Score is to 900, the more favourably your loan application will be viewed by a lender. The Score plays a critical role in the loan approval process. it is important to note that every loan provider, that uses the CIBIL TransUnion Score, has its own benchmark of what constitutes a “good” score. For example, a score of 670 may be an adequate score for some loan providers, but reason enough to reject a loan application for some others.
Note: The higher the credit score the more favourably it is viewed by loan providers. 80% of all new loans sanctioned are above 750.
What affects the credit score?
- Late payments or defaults in repayments
- High outstanding balances in loans and credit card accounts
- High percentage of personal loans or unsecured loans
- Multiple loan applications made for a credit facility
- Closure of loans through “Settlements” or “Write offs”.
Need a CIBIL report to know about your credit history. Here is the process of getting a CIBIL report.
You can choose to purchase a CIBIL TransUnion Score (Including CIR) or only your CIBIL CIR.
For offline application the following documents are required to be filled and submitted.
- Request Form
- Identity Proof Provide a PAN Card / Passport / Voter’s id/ Driver’s License
- Home Address Proof – Current Bank Statement / Recent Electricity Bill / Current Telephone Bill (Landlaine/Mobile)/ Passport / Credit Card Statement (Should be not more than 3 months old from the date of filing the application)
Rs 470/- for CIBIL TransUnion Score + CIR
Rs 154/- for CIR only
Follow the instructions in http://www.cibil.com/credit-score
CIBIL TransUnion Score (Including CIR) online application to be filled and pay via Net Banking / Debit / Credit / Cash Card. After successful payment confirmation you will receive Registration ID & Transaction ID. You’ll then be required to provide the soft copies of your identity proof and address proof.
If your application gets authenticated, you’ll receive your credit score and CIR in your e-mail in about 2-4 days. However, if the authentication fails, you need to take a printout of the receipt for online payment and mail it to the below mentioned CIBIL address along with your proofs.
[Consumer Relations – Disclosure Request,
Credit Information Bureau (India) Limited,
Hoechst House, 6th Floor, 193,
Nariman Point, Mumbai 400 021]
Tel.: 022 61404300, email: email@example.com
Most Important: CIBIL has no authorised agent. Please do not contact anyone other than CIBIL in order to gain access to your CIBIL TransUnion Score and/or CIR.