At times, you might be thinking why your application for loan was not accepted! Why did you receive lesser amount than what you were expecting? One might be perplexed that what it is that goes into the decision making for loan applications. Ideally, a lot many factors are taken into account while deciding on the applications but one amongst it which is increasingly gaining importance is YOUR CREDIT HISTORY. It is this factor which will build up first ideas about you to a prospective lender. Initially, this was accessible only by lenders, but from 2009 individuals too can avail a copy of it with their credit scores. CIBIL (Credit Information Bureau) in association with TransUnion has launched Cibil TransUnion credit score for consumers as well.
Why am I talking about this score?
For any person, it is important to understand his creditworthiness, where he spends, how he spends and track his repayment behaviour. This shall help him to keep control of his finances and when required, can access to funds easily without hassles.
What is Cibil TransUnion Credit Score?
This score is a 3 digit numeric summary of your credit history. It is generated from the details in “Accounts” and “Enquiries” sections in your Credit Information Report (CIR) and it could range anywhere from 300 to 900 and is derived from your repayment history. Rule is: In case your score is more close to 900, then probability is high that your loan application will be considered more favorably by the credit institution while score nearing 300 suggests a poor score. This score plays a very significant role in the approval process of your loan as it is an indicator of how likely shall you pay back your loan amount depending on the past pattern of your credit usage and repayment behavior. So now even you can avail this copy of your credit report by paying required fee and doing related paperwork.
Factors affecting your Cibil Score:
How is it calculated?
Benefits of Good Credit Score
Credit Score Range and What It Means
|CIBIL Score Range||Meaning|
|NA/NH||Having no credit means you don’t have a positive or negative history of using credit, meaning you haven’t borrowed money in the past or that your activities have been recent enough to establish a score. We’ll help you build credit so it won’t be no credit for long.|
|350 – 549||A CIBIL score of 350-549 is considered a poor credit score and indicates that you have never borrowed any credit in your life or that you have been late in paying your credit card bills or EMIs for loans. With a CIBIL score in this range, it will be difficult for you to get a loan or a credit card as you are at a high risk of turning into a defaulter.|
|550 – 649||This range of credit score is considered “fair”, suggesting that you have been struggling to pay the dues on time. It suggests you have been struggling to pay the dues on time. The interest rates on the loan could also be higher.|
|650 – 749||A CIBIL score of 650-700 and above is considered good for the loan approval process. If your CIBIL score is in this range, you will have a high chance at getting a loan approved.|
|750 – 900||CIBIL score between 750 -900 is an excellent score that makes you creditworthy. It means that you are very regular with payments and are a low-risk customer for banks and other credit institutions, who will offer you loans and credit cards at the cheapest of rates.|
Understanding your Cibil Credit Report
Download Understanding your Credit Report pdf.
How to get your Credit Score?
You may want to buy your credit score report (including CIR) or only CIR.
- Request Form ( Download )
- Identity Proof ( PAN/ Passport/ Voter’s Id)
- Address Proof ( Bank statement/ Electricity Bill/ Telephone Bill/ Passport/ Credit Card statement[Note that address proof shouldn’t be more than 3 months old from date of application])
Credit Score + CIR: Rs. 550
You can make the payment either online or through a demand draft.
- Complete the CIR Request Form Online.
- Pay via Net Banking, Debit/Credit card.
- You will receive a registration and transaction Id in your email as a confirmation.
- Print that and mail it with the documents to CIBIL.
- In favor of “Credit Information Bureau (India) Limited” payable at Mumbai.
- Download the request form.
- Send the completed form, along with the demand draft and documents.
Via speed post or regular post:
Credit Information Bureau (India) Ltd, PO Box 421, Wagle Industrial Estate PO, Thane 400 604.
Via courier or registered post:
Credit Information Bureau (India) Ltd,
Hoechst House, 6th floor,
193, Backbay Reclamation,
Mumbai 400 021.