CIBIL report is a detailed information of credit facilities availed by consumers, such as credit cards and loan products, including personal loan, home loan, auto loan, overdraft facilities, etc. It is also termed as Credit Information Report (CIR) that contains all the necessary information of your credit health. To avail certain credit benefits and make yourself aware of your creditworthiness, you can check and download your CIBIL score for free from various financial institutions, with no impact on your credit score with monthly updates.
What is CIBIL score?
CIBIL score is a 3-digit that ranges from 300-900, wherein any score above 750 is considered good by the lenders. CIBIL collects and maintains consumer’s credit information, as provided by the financial institutions on usually monthly basis (30-45 days). In case of a loan or credit card application, lending institutions inquire into your credit report by requesting a score from the credit bureau. It is considered as a hard inquiry made by the lender with the credit bureau and may have some impact on your credit score.
Components of CIBIL Report
CIBIL Report consists of various key components that are as follows:
- CIBIL Score: The most vital of all components in this report is CIBIL score that ranges from 300-900. CIBIL score above 750 is considered good by financial institutions, as higher score indicates responsible credit behaviour of the applicant
- Personal Information: This is secondary important section that contains your personal information, such as name, gender, and Voter’s ID, Ration card and PAN number, date of birth and passport details
- Contact Information: It contains all the necessary information related to your address and contact details, such as registered address, mobile number and email address
- Employment Information: This section provides information regarding your employment details, including income and occupation at the time of last loan sanctioning
- Account Information: Another important section of CIBIL score report is the account information that provides the details of your past and existing credit cards and loans, as well as account status, payment details, and collateral and (Days Past Due) DPD details, if any. It also consists of the name of the lender, type of loan (whether secured or unsecured) and details of all other accounts
- Enquiry Information: In this section, you can add remarks regarding any particular loan transaction for evaluators.
Types of CIBIL Reports
CIBIL report is classified into two major reports, such as Credit Information Report (CIR) and Company Credit Report (CCR). CIR is for calculating and generating CIBIL score for individual consumers, whereas CCR is for companies, wherein they are ranked by the CIBIL to further simplify the lending procedure for them. Based on consumer’s credit information, CIBIL’s CCR generates CIBIL rank (1-10) for companies, wherein Rank 1 is the highest with low risk to banks and high possibility of borrowing opportunities and Rank 10 being vice-versa.
Benefits of High CIBIL Score
High CIBIL score beholds various benefits for individuals, as well as for companies to help them make informed decisions regarding borrowings and secure their financial future:
- Lower interest rates on loans
- Easy and quick approval of loans and credit cards
- Higher possibility of Pre-approved loan/credit cards from lenders
- Better negotiation power with the borrower(s)
- Improved chances of increased or higher credit card limits
- Option of longer loan repayment tenure
CIBIL report acts as a prominent determinant in the journey of credit application approval or denial. Therefore, it is highly recommended to check your CIBIL report regularly for errors and rectify them at the earliest. These errors are mainly incorrect or mismatched personal information, wrong account details, duplicate account, incorrect balance, errors in existing credit accounts, mismatch in overdue amount if paid off or not, Days past due (DPD) details, etc. After identifying any of these errors, you can raise a dispute by visiting the official website of TransUnion CIBIL and filling the CIBIL Dispute Resolution form.