Help Series

Help 108: All About CIBIL Credit Score

Whenever you apply for a loan or a credit card, the lender bank or organization does their assessment to get your credibility in the market and depending on that score bank approves or rejects your application for loan or credit card. This assessment is done using the credit score which CIBIL has for you in their records.

In this week’s Help Series we tell you the benefits of keeping a track of your credit score and procedure involved to fetch your credit score reports.

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The Credit Information Bureau (India) Limited has a large database of customers with their credit scores. Lending institutions dip into this database for assessing their creditworthiness. The CIBIL credit Score is a 3 digit numeric summary (ranges from 300 to 900 ) of a consumer’s credit history, compiled from information received from Credit Institutions who are members of CIBIL. The Score helps a Credit Institutions in estimating the likelihood of repayment of loan based on the individual’s past pattern of credit usage and loan repayment behaviour. The closer the score is to 900, the more confidence the Credit Institution will have in the individual’s ability to repay the loan and hence, the better the chances of the individual’s application getting approved.

The fact that your credit scores will be a key reason to determine your loan or credit card sanction makes it essential for you to monitor your credit score. Consider this hypothetical example-

Vaibhav applied for a home loan from a bank. The bank rejected his loan application on the grounds that his credit report mentioned that he has a long overdue outstanding amount on a credit card. This took Vaibhav by surprise as the issue was amicably settled with the bank, post which he stopped using the credit card. He got the bank to acknowledge the same and he subsequently informed CIBIL, presenting the acknowledgement from the bank as proof for his claim. CIBIL then verified and incorporated the updated, correct the information in his credit report and he was granted a loan.
Errors are bound to happen due to incorrect reporting by lenders or due to human errors.
You need to report the error to CIBIL with valid proof and if you are not satisfied with the action you can lodge a complaint with the banking ombudsman’s grievance cell, which will take up the issue and evaluate it from a neutral stand.

This example shows the importance of keeping a track of your credit score and you can save a lot of time while applying for a loan or credit card if you already know your credit score. Also, if you have a good score, you can negotiate for better interest rates in your favor. Now the process to fetch your records and reports from CIBIL is quite simple.

Just go to Credit Information Bureau of India Limited (CIBIL) website. Click on the “Buy Your Credit Score” link. Fill out the details in the page which opens.
After you fill the online form, you will be taken to page where you will be given the options to make payment. You can make a payment of Rs 470 using your credit card, debit card or net banking.

To authenticate your identity you will have to answer a minimum of three questions of the five questions asked. The questions will be based on your credit history like credit cards held and loans being serviced in your name. After a successful authentication your personalised credit score will be emailed to you on the same day by CIBIL.

In case you fail the authentication questions do not worry, you will have to send the hard copy of the application for CIBIL score generated on line with the CIBIL transaction ID along with hard copy of your ID and address proof to CIBIL.  CIBIL on verification will send you the hard copy of the CIBIL credit report to your address mentioned indicated in the address proof.

Hope this helps you while applying for a loan or credit card. If there is any other question or concern regarding this, just ask the experts!