Know All About your CIBIL Score and Report

Know All About your CIBIL Score and Report

Indian Credit Information Bureau is the prime credit information scoring and reporting company. It is also known as the TransUnion CIBIL, where CIBIL stands for <$1span>Credit Information Bureau (India) Limited. It is tasked with collecting and sourcing an individual's financial information, collated under various heads. It provides an accurate CIBIL score picture of the individual's prior financial commitments, history of repayments, loans availed with all details, credit card information, its repayment history, and more. 

Leading financial institutions, banks, investors, etc., use the CIBIL Credit Information Report and CIBIL score to base their risk assessment of an individual and lending decisions on whenever a loan application is made to them. The CIBIL score is not fixed and keeps changing. A better CIBIL score provides you access to loans on better terms, lower interest rates, longer repayment periods, new credit cards, and various credit products like car loans, home loans, insurance packages etc.

Did you know?

Checking your credit score on cibil.com will not impact your credit ratings adversely. 

How to get your free CIBIL score?

Here is how you can quickly check your credit score for free at the official CIBIL website. Besides this site, other lenders also offer a free credit score check, e.g., State Bank of India, Paisa Bazaar, Credit Mantri, Bank Bazaar, etc.

  • Firstly, you must head to the official CIBIL website and create an account.
  • Your email ID is used as your user name, and you need to create a password with at least one capital letter, a digit, and a special character that is 8 to 15 characters long. Also, enter your ID type. You then need to fill out the form with your name, date of birth, ID (PAN number, Voter ID number, Passport number, etc.) Click Accept & Continue to pull up the next page.

 

  • The authentication page asks you a question about your credit information, like your last two loan numbers, etc. This procedure will authenticate your account.
  • The page prompts you to become a subscribed member. Your choices here are one month at ₹550, six months at ₹800 and one year at ₹1200. Besides unlimited login facilities to your myCIBIL account, the portal helps you with a credit score simulator that enables the right decisions to maintain your credit score and offers personal loans based on your CIBIL score. 
  • Save your filled-in form and proceed to the payments page to make a payment for your CIR. You can use any payment modes reflected to make the payment like debit, credit, pre-paid, cards, net banking, UPI payments, etc.

Also read: What are Debit, Credit Note and their Formats?

  • Once payment is made, you need to authenticate your saved application and payment by answering at least three of five CIBIL questions related to your credit history.  
  • On successful authentication, you can log in to view your credit score for free or click on the Account Details section tab on the top of the page to display all your account details and credit information. 
  • On authentication of your ID, CIBIL dispatches your credit score and credit information report within 24 hours in PDF format. Presto, you have your CIBIL report, and all you need to know is how to download CIBIL report from your email.
  •  Just in case your authentication does not succeed, you can send CIBIL a physical copy of your application and get your CIBIL report by post. 
  • The credit report can also be downloaded as a PDF when you have a CIBIL login. However, this requires a subscription account. 

What does your free credit score mean?

The CIBIL score rating generally ranges from 300 to 900, the highest possible score. To help you understand your score, here are the different CIBIL score ranges.

  • A score of 700 to 800 is considered excellent for loans, and it means you have been responsible for paying your loans promptly and do not run up unnecessary credit.
  • A score of 600 to 700 is considered loan-worthy. You probably have a skewed loan portfolio and a few delayed payments, and you also will need more paperwork to make sure of your loan repayments as security or collateral.
  • A score of 500 to 600 is a score that is average and makes it difficult to approve your loan. You have probably accumulated red flags for card and loan payments, meaning you struggle to pay and spend too much. You should take a hard look at improving your credit score.
  • Below 500 is a poor credit score and will probably never get a loan. There are risks in lending money to you as your money management is poor and your spending habits risky.

Credit Information Companies CICs like Equifax, Experian, etc., may have a different scoring model than CIBIL. Yet, your information reaches all the CICs and plays the same part in rating your creditworthiness. The CIBIL model score is 765, and this puts you in the top 35% of responsible borrowers to whom loans are considered a safe bet.

Also read: What are Debit, Credit Note and their Formats?

What happens to your free CIBIL score when you have no debt?

When you have no known debts as per the CIBIL records, your score indicates an NH or NA. It means that your CIBIL score is "not applicable" (or NA) and is because there is "no history" (or NH) to score your credit ranking. Such a situation occurs when you have never been issued a credit card or have no history of taking a bank loan. It means you have no history of taking known debts, credit loans, cards etc. 

To avail a loan from banks or other financial institutions, you must prove that your credit history has been that of a good repayer of loans, and you are a responsible borrower with no doubtful or 'DBT scored' loans. Consider having a credit card, car, home, or personal loan to build your credit history and become eligible for other loans and credit products.

Credit Report features:

The CIBIL score has six main sections.

  • The three-digit CIBIL score, 
  • Your personal information, 
  • Your address, telephone number and contact information, 
  • < Want to learn about Finance, Investing, and much more!, Checkout our partner blogs.