TransUnion CIBIL Limited (CIBIL) is India’s first Credit Information Company (CIC). It is authorised to collect information from financial institutions on individuals and organisations to assign a three-digit value indicating the creditworthiness of the individual or organisation.
All lenders will first check the CIBIL credit score report of the loan applicant. Unless the applicant passes this threshold, the lender may not approve the loan or offer disadvantageous terms such as higher than average interest rates, low principal, and stringent repayment terms.
Thus, CIBIL credit score represents one of the most crucial processes for loan approvals. It is the first impression of the borrower in the eyes of the lender. Usually, a minimum credit score of 720 to 750 is considered by lenders. The closer one gets to 900, the higher are the chances of getting a loan approved with extremely favourable terms.
Steps To Follow To Receive Free CIBIL Credit Score and Report?
· Create an account with CIBIL with your personal username and password
· Enter your personal details such as date of birth, address, and identity proof
· Verify your identity using the OTP sent to your phone or additional details may be asked
· Click on the ‘Get Your Free Report’ link to get yours
CIBIL provides a free credit score report once a year. If you are a future borrower who wants to receive regular credit score reports to keep an eye on your scores and report any discrepancies immediately to ensure your credit scores are not negatively affected, you can subscribe to CIBIL and receive unlimited access.
What Is In My Report?
CIBIL report will have details with respect to your personal information, employment history, contact information, and credit limits on various credit cards and accounts. It will also contain detailed information with credit history and records of past transactions.
The report is divided into four sections:
· Account Information – Details on accounts in your name
· Account History – Payment records
· Public Records – Big financial slip-ups, bankruptcies declared and criminal arrests made
· Credit Enquiries – List of third parties who accessed your report
I Got My Report, What Do I Do Next?
Users will get access to personalised loan and credit card offers based on their CIBIL scores. If they find some inaccuracies in their reports, there is a simple online dispute resolution mechanism that will help users correct their scores. It may take up to 30 days to resolve the issues subject to the time taken by CIBIL to respond.
Users who wish to improve their credit scores can undertake the following actions:
· Initiate dispute resolution procedure immediately in case of inaccurate information
· Repay all your dues – credit card, overdraft, loan EMIs, purchase EMIs, etc.
· Spread your credit into various options (i.e short term, long term, secured, unsecured)
· Reduce regularity of taking credit
· Continue calling for a credit score report to check on the progress
In conclusion, CIBIL score reports are extremely important for a financially healthy life. Emergencies can occur anywhere at any time and you may require external financial assistance urgently. An updated CIBIL score will help you get an approved loan at the quickest possible time with the best possible terms and conditions.
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