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CIBIL Online Score and Credit Information Report
April 01 , 2013

Lending scene is India has undergone much change ever since CIBIL started issuing credit reports to lenders. A bank or credit institution that you approach for a loan would first get your credit report from CIBIL before making lending decisions for you. CIBIL also issues a 3 digit credit score with the report which indicates your credit worthiness. These days CIBIL score has become a crucial tool for banks to evaluate loan application of customers. So much for a score!

CIBIL report and online score

The 3 digit CIBIL score ranges from 300 to 900. According to it banks happily lend to those with a score of 750 or above. Higher the score the better your credit history is. This is part of Credit Information Report (CIR) which has detailed credit history of a customer.

CIBIL gets these records from banks, NBFCs and other credit institutions you might have borrowed from. Banks, credit card companies and all lending institutions are members of CIBIL.

Individuals can buy CIBIL report for themselves for Rs 470. Or they can access their score with the bank where they have applied for loan.

To get the score from CIBIL one needs to fill in the online form where loan account number has to be provided, make payment through net banking or debit/credit card and answer 3-5 authentication queries. Your score will be displayed immediately and emailed to you if authentication gets through smoothly. If there are issues you might be asked to post proofs of identity and address. After this they will deliver your credit score and CIR to your postal address.

If you never borrowed before or ever had a credit card to your name you have nothing to worry about since you would not have prior credit history. In this case your score would be NA or NH.

Making sense of CIBIL report

CIBIL CIR is used by lenders to evaluate your past credit history and repayment behaviour. There are different sections in the report. The ones that matter most in your loan approval are put down below.

 1. Payment history 

36 months of payment history are reported here in the Accounts section of your Report. Days Past Due (DPD) shows many days late you were in making payment that month. Anything besides 000 is bad.

2. Current balances 

When you pay off existing loan and have zero or low credit card outstanding balances your current balances would be low. It tells the bank how much more EMIs you can afford apart from your current loan payments. Lower the current balances higher the chances of approval. This appears in the Account section.

3. New credit facilities 

If you have a number of new loans or credit cards then it might mean that you have lesser capacity to manage additional EMIs.

 4. Number of new enquiries 

When a lender accesses your CIBIL credit score for evaluating your loan application he is making an 'enquiry'. Greater the number of enquires worse it is since it means that you have been constantly seeking loans or credit cards. Lesser you borrow the better you are at managing your personal finances!

CIBIL blacklist

It is commonly believed that CIBIL maintains a list of defaulters, one that is not accessible to consumers. However CIBIL maintains that there is no such thing as defaulter's list for individuals. It possibly does maintain a blacklist of defaulters for companies and businessses.

Can your CIBIL score be incorrect?

CIBIL's CIR depends upon your past loan and credit card history which is collated from information provided by banks. Discrepancies can arise if your bank has not updated your record. You might have paid off outstanding debt but it might have not been reflected in CIBIL records. Lenders update information on a monthly basis. So if you apply for CIR within 45 days of making a repayment it might not have got updated in the records.

Rectify errors through Dispute Resolution

If there are errors in any details in the report it can lead to a lower (or at times higher!) score. In this case you can make use of online Dispute Resolution mechanism. Disputes regarding loan account detail or personal information can be corrected through Dispute Form.

Ensure that you check all details in the report. See that the loan account number is yours and not another's! There can be errors in loan type, payment details, current balance, sanctioned credit, date of opening/closing.

Every CIBIL report has a unique 9 digit control number. You must quote this while filling in the dispute form along with date of report and reason for dispute. In the field for reason of dispute you can specify the nature of error in Personal Information or Loan Account Information.

If you are referring to your CIBIL score report used by a bank you must first obtain the control number and report date before initiating dispute.

Treat CIBIL score cautiously

Ultimately remember that CIBIL is a private body. It has nothing to do with RBI or any regulatory authority. Many times borrowing conditions like interest rate and loan amount depends on how good your credit history is. Unfortunately CIBIL online scores which are being widely used by banks and other lenders for approving loan, are updated by banks themselves.

So banks could use CIBIL score as a tool to blackmail customers. Some banks have the tendency of being slack in reporting settlement of loan account but quick in posting defaults. Blame it on inefficiency on the part of CIBIL in updating its records; instead of improving credit environment CIR scores have made many customers suffer at the hands of lenders. Some lenders even refuse to lend to customers with no prior credit history!

In any case if you have taken a loan or credit card your name figures on CIBIL list; it's inescapable. If you have a poor CIBIL score work towards improving it, in your own best interests.

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