What is CIBIL Credit Report?
Credit Report contains your credit score and history of repaying loans or credit.
What is CIBIL TransUnion Credit Score?
A credit score is a number generated by a mathematical formula – based on information in the credit report. A credit score is a three-digit number that is used to predict how likely you are is to repay a loan/credit on time. The resulting number is a highly accurate prediction of how likely you are to repay your loan/credit.
A credit score is a number generated by a mathematical formula – based on information in the credit report. A credit score is a three-digit number that is used to predict how likely you are is to repay a loan/credit on time. The resulting number is a highly accurate prediction of how likely you are to repay your loan/credit.
CIBIL TransUnion Credit Score Ranges
As per CIBIL, most credit scores range from 300 to 900, with the majority of people in the 600 to 800 range.
As per CIBIL, most credit scores range from 300 to 900, with the majority of people in the 600 to 800 range.
What is the Best Credit Score?
As per CIBIL, to get the most favourable interest rates, you’ll need a score of 720 or higher. In terms of interest rates, on average, a person with a credit score of 520 will get interest rates on loans that are three to four percentage points higher than rates given to a person with a score of 720.
As per CIBIL, to get the most favourable interest rates, you’ll need a score of 720 or higher. In terms of interest rates, on average, a person with a credit score of 520 will get interest rates on loans that are three to four percentage points higher than rates given to a person with a score of 720.
What is a Credit Score Made up of?
Nobody (other than CIBIL TransUnion) knows the mathematical formula behind the calculation of credit score. However (as per investopedia), what is known is that the calculation is broken into five major categories with varying levels of importance. These categories, with weight in brackets, are payment history (35%), amount owed (30%), length of credit history (15%), new credit (10%) and type of credit used (10%). All of these categories are taken into account in your overall score – no one area or incident determines your score.
Why do Bank started using Credit Score?
To check how likely their future customer is to repay a loan on time. Check out the below example -
Two friends, Raj and Samir, working in a MNC and drawing a handsome salary. Raj has taken a car loan from XYZ Bank and has been paying his EMIs in a timely manner. Samir also took personal loan from XYZ Bank, but due to some personal issues, he defaulted in EMIs payment. Now both of them looking to buy a flat and in the market for home loan. Raj went to XYZ Bank for home loan, after checking his past paying record bank immediately gave him the loan at low rate. Samir went to ABC Bank (avoided XYZ Bank), submitted all the relevant documents and not mentioned any details about the past default of personal loan in loan application to ABC Bank. Samir also got home loan at the normal rate without any trouble, because there is no way for ABC Bank to check the credit history of Samir.
To check how likely their future customer is to repay a loan on time. Check out the below example -
Two friends, Raj and Samir, working in a MNC and drawing a handsome salary. Raj has taken a car loan from XYZ Bank and has been paying his EMIs in a timely manner. Samir also took personal loan from XYZ Bank, but due to some personal issues, he defaulted in EMIs payment. Now both of them looking to buy a flat and in the market for home loan. Raj went to XYZ Bank for home loan, after checking his past paying record bank immediately gave him the loan at low rate. Samir went to ABC Bank (avoided XYZ Bank), submitted all the relevant documents and not mentioned any details about the past default of personal loan in loan application to ABC Bank. Samir also got home loan at the normal rate without any trouble, because there is no way for ABC Bank to check the credit history of Samir.
However, if credit score was available then ABC bank obtains a credit score from CIBIL where Samir shows up as a defaulter with another bank. This could either result in a rejection of his home loan request or the ABC Bank might charge him a high rate of interest.
How to read your CIBIL Credit Report?
First thing is to get the CIBIL Credit Report, you can get it via Online or Offline. The CIBIL Credit Report contains following info –
1- CIBIL TransUnion Score
This section reflects your CIBIL TransUnion Score, which is widely used by loan providers to evaluates loan applications. An individual’s CIBIL Credit Score ranges between 300-900, and is calculated on the basis of the information in the ‘Accounts’ and ‘Enquiry’ section of the Credit Report.
This section reflects your CIBIL TransUnion Score, which is widely used by loan providers to evaluates loan applications. An individual’s CIBIL Credit Score ranges between 300-900, and is calculated on the basis of the information in the ‘Accounts’ and ‘Enquiry’ section of the Credit Report.
2- Personal Information
It contains your personal details such as your name, Date of Birth, Gender and other ID proof details such as Income Tax ID (PAN), Passport, Drivers Licence and Voter ID.
It contains your personal details such as your name, Date of Birth, Gender and other ID proof details such as Income Tax ID (PAN), Passport, Drivers Licence and Voter ID.
3- Contact Information
It contains address, phone numbers, mobile numbers, e-mail ID and other contact related details. The address also explain whether the address is residential address, official address, permanent address or temporary address (Max up to 4 address and email address are provided).
It contains address, phone numbers, mobile numbers, e-mail ID and other contact related details. The address also explain whether the address is residential address, official address, permanent address or temporary address (Max up to 4 address and email address are provided).
4- Employment Information
It contains your occupation and income (at the time of opening credit facility) as reported by the lender for a particular credit account.
It contains your occupation and income (at the time of opening credit facility) as reported by the lender for a particular credit account.
5- Account Information
It contains the name of lender/s, the type of credit facilities (home loan, auto loan, credit card etc), the account number/s, whether single or jointly held, when each account was opened, date of the last payment, loan amount, current balance, amount overdue and a month on month record of up to 36 months of payments.
It contains the name of lender/s, the type of credit facilities (home loan, auto loan, credit card etc), the account number/s, whether single or jointly held, when each account was opened, date of the last payment, loan amount, current balance, amount overdue and a month on month record of up to 36 months of payments.
6- Enquiry Information
It contains the enquiries done on the credit report of the consumer, by lending institutions. The details show your loan applications such as the name of the lender, date of the application, the type and its size. If more number of enquiries is present (in short period of time), then a negative impression may build because it is a clear sign that the borrower is hungry for credit.
It contains the enquiries done on the credit report of the consumer, by lending institutions. The details show your loan applications such as the name of the lender, date of the application, the type and its size. If more number of enquiries is present (in short period of time), then a negative impression may build because it is a clear sign that the borrower is hungry for credit.
How to Apply for CIBIL TransUnion Credit Score and Credit Report Online?
There are two ways to apply to the CIBIL TransUnion Credit Score – Online or Offline (buy post). Online is quicker (4 working days) as there is no time lag in paying fee and depositing relevant documents. Here is what you need to do to get it online -
Step 1- Go to CIBIL and fill in the Online Request Form. You will have to provide your personal details such as Name, Date of Birth, Address, Phone, Email address (to deliver the report and score), available identification details such as PAN Card, Voters ID, Passport, Driver’s License. You will also need to provide couple of existing loan or credit card details (if applicable).
Step 2- Make the payment of Rs. 470/- (CIBIL TransUnion Credit Score + Credit Report) via Net Banking/Credit Card/Debit Card/Cash Card.
Step 3- After successful payment processing, you will receive your unique CIBIL Identification Number.
Step 4- The system will now ask you multiple choice format questions (3-5) related to your existing loans and credit cards accounts etc. You will need to correctly answer these questions for successful online authentication. Please keep all your loan and credit cards details handy.
Step 5- If your online authentication is successful, you will receive a confirmation message from the site. You will get your credit report and score in next four working days. In case if your online authentication is failed, please follow online instructions on how to get your credit score.
How to Apply for CIBIL TransUnion Credit Score and Credit Report Offline (by Post)?
There are two ways to apply to the CIBIL TransUnion Credit Score – Online or Offline (buy post). Offline mode take little more time (10 working days) then online mode. Here is what you need to do to get it offline –
Step 2- Fill in the form with your personal details such as Name, Address, Date of Birth, Phone, Mobile, Email address, Loan Account Number etc.
Step 3- You also need to submit self attested copy of following documents –
(a) Identification Proof - Any one of the following: PAN Card, Passport, Voters ID and Driver’s License.
(b) Address Proof - Any one of the following: Bank Statement, Electricity Bill, Telephone Bill, Credit Card Statement and Passport.
Note – You need to submit minimum one document from each category.
(a) Identification Proof - Any one of the following: PAN Card, Passport, Voters ID and Driver’s License.
(b) Address Proof - Any one of the following: Bank Statement, Electricity Bill, Telephone Bill, Credit Card Statement and Passport.
Note – You need to submit minimum one document from each category.
Step 4- Enclose Demand Draft of Rs. 470/- (Credit Score + Credit Report) or Rs. 154/- (Credit Score Only).
Step 5- Post all the above documents to following address –
Consumer Relations – Disclosure Request,
Credit Information Bureau (India) Limited, Hoechst House, 6th Floor, 193,
Backbay Reclamation, Nariman Point, Mumbai 400 021.
Consumer Relations – Disclosure Request,
Credit Information Bureau (India) Limited, Hoechst House, 6th Floor, 193,
Backbay Reclamation, Nariman Point, Mumbai 400 021.
Step 6- After successful payment processing and approx 10 working days, you will receive your CIBIL Report (Credit Score + Credit Report).
How to Remove your Name from CIBIL Defaulter List?
The first step is get your credit report from credit rating agency – CIBIL.
The next step is to read it carefully and know the reason why your name is in the default list?
The next step is to read it carefully and know the reason why your name is in the default list?
1- It could be due to Human Error e.g. Wrong – Name, DOB, Gender, PAN, Passport Number, Address etc.
2- It could be due to Incorrect Reporting/Mistake e.g. Wrong Credit Cards Details, Ownership – Accounts that aren’t yours, but in your credit file, Late Payments – Reports of late payments in your credit file, when you paid on time or you may be a victim of identity theft.
3- It could be due to Loan Default e.g. Loan Defaults, Credit Cards Default, Late Payments and any other factors that are negatively impacting your CIBIL score and history.
2- It could be due to Incorrect Reporting/Mistake e.g. Wrong Credit Cards Details, Ownership – Accounts that aren’t yours, but in your credit file, Late Payments – Reports of late payments in your credit file, when you paid on time or you may be a victim of identity theft.
3- It could be due to Loan Default e.g. Loan Defaults, Credit Cards Default, Late Payments and any other factors that are negatively impacting your CIBIL score and history.
The second reason is also easy to fix. In these cases check out – who put you on default list e.g. Bank Name. If you have any acknowledge letter or any proof (related to above problem) from the bank or financial institution just submit that to CIBIL. If you don’t have, you have to follow up with that bank and got a letter and forward it to CIBIL. CIBIL then verify the proof with the bank and incorporate the update on your credit file. With in few days the correct info will be displayed in your credit report.
If bank is not cooperating with you then write a letter to bank to fix it with a copy to CIBIL. If you don’t hear from them in 30 days or not satisfied with the action you can lodge a complaint with Banking Ombudsman to resolve the issue.
The third reason could be that you have indeed defaulted on a loan and hence your name was entered in the defaulter list. If this is the case, You need to take up this with the defaulted bank and settle it out. And submit that settlement letter to CIBIL. The default will remain on your file but show as settled.
If you don’t want to settle it than it will remain on your file for seven years and it will destroy your score. During this period no one will give you any loan or credit. After this seven year period, you again need to start rebuilding your credit by paying your loan and credit card bills on time.
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