CIBIL SCORE
The first I came across the word CIBIL few months back when one of my friend was running pillar to post for a loan of few lakh of rupees which he even can pay in one go but Banks were not sanctioning him this loan saying your CIBIL Score is poor. Though, he is employed in a multinational company. Finally he came to knew about a loan of few thousand rupees which he had taken from a bank and paid the amount 10 years back that brought his CIBIL score poor and he had the above said problem.
What is CIBIL report?
Are you looking to check your credit score and want to know why your loan application was rejected? Yes, if you are misusing your credit taking capacity, you are being watched at like never before in this country. I am talking about CIBIL here and in this article let me show you how your current behaviour related to credit card, personal loan, home loans are going to affect you in future in a good and bad way.
CIBIL is Credit Information Bureau of India Limited, which acts like a central repository of credit information in India. As many as 500 different banks and financial institutions are CIBIL’s clients and they report each of their customers (like me and you) actions to them which affect for good and bad ways.
So if you take a credit card from any bank say SBI or ICICI, then bank reports to CIBIL about it. If you enquire about car loan to HDFC Bank, hold your breath! as even that enquiry is reported to CIBIL, if you can’t pay your EMI for home loan with SBI Bank for a particular month, that also gets reported to CIBIL.
Not just your bad actions, but even your good actions like paying EMI’s on time, paying credit card with punctuality also gets reported with CIBIL. You can see that this way, a history is maintained at CIBIL for each person, which can be good history or bad history depending on the case and this information is very useful for banks to decide if they want to give loan to you in future or not. All the banks are now looking at CIBIL report before taking the decision.
Good and Bad credit Report
CIBIL report is not always bad. It’s an extremely good concept which is now taking shape in India recently. If there are two people A and B and A is a good guy and B is a bad guy, obviously A should get better rates of interest, faster processing, first right to loan. Whereas, guy B should get loan at higher rate of interest (because he is risky) and may be banks can even deny entertaining him at all.
CIBIL gives us the power to build our credit report. So if you become responsible and use your credit effectively and with planning, you can build a good credit history with CIBIL, which will help you in long run. Also note that taking a lot of loans without having the capacity is also a negative thing and that can affect your credit report.
Also one hast to be super sensitive and careful with credit card and loan repayment, because one small mistake or being lazy in this area can cost a lot.
What Impact CIBIL reports:-
10% Types of Credit used like Credit cards purchase,Home loan,Car loan etc
10% Recent search of Credit-Do not inquire if you do not want loan or Credit cards
15% Length of credit history,More longer credit history has more impact in good way
30% Credit utilization-How much debt you have compared to your capacity or limi set by Banks
35% Payment History-If you dont miss the payments,It is good and got this score.
All these parameters set together make your CIBIL SCore.
Therefore it is very important for us to know our CREDIT SCORE which can be had it either
Online (Transunion score along with CIR report and fee is approx.Rs.450/=)or
Offline(This is called CIR report fee Rs.142/=)
Download CIR request form from WWW.CIBIL.COM/accesscredit.htm
Fill up the forms
And pay the fee as asked online between Rs.300-500/=
After successful transaction of fee online you will get CIBIL Registration ID and Transaction ID
Now send the documents to the address below either through Speed post or through Regular post
Credit information bureau(India) India Ltd.
OO BOX 421,Wagle Industrial Estate
P.O-Thane, 400604
Pramodara
Mob No-9999908635
The first I came across the word CIBIL few months back when one of my friend was running pillar to post for a loan of few lakh of rupees which he even can pay in one go but Banks were not sanctioning him this loan saying your CIBIL Score is poor. Though, he is employed in a multinational company. Finally he came to knew about a loan of few thousand rupees which he had taken from a bank and paid the amount 10 years back that brought his CIBIL score poor and he had the above said problem.
What is CIBIL report?
Are you looking to check your credit score and want to know why your loan application was rejected? Yes, if you are misusing your credit taking capacity, you are being watched at like never before in this country. I am talking about CIBIL here and in this article let me show you how your current behaviour related to credit card, personal loan, home loans are going to affect you in future in a good and bad way.
CIBIL is Credit Information Bureau of India Limited, which acts like a central repository of credit information in India. As many as 500 different banks and financial institutions are CIBIL’s clients and they report each of their customers (like me and you) actions to them which affect for good and bad ways.
So if you take a credit card from any bank say SBI or ICICI, then bank reports to CIBIL about it. If you enquire about car loan to HDFC Bank, hold your breath! as even that enquiry is reported to CIBIL, if you can’t pay your EMI for home loan with SBI Bank for a particular month, that also gets reported to CIBIL.
Not just your bad actions, but even your good actions like paying EMI’s on time, paying credit card with punctuality also gets reported with CIBIL. You can see that this way, a history is maintained at CIBIL for each person, which can be good history or bad history depending on the case and this information is very useful for banks to decide if they want to give loan to you in future or not. All the banks are now looking at CIBIL report before taking the decision.
Good and Bad credit Report
CIBIL report is not always bad. It’s an extremely good concept which is now taking shape in India recently. If there are two people A and B and A is a good guy and B is a bad guy, obviously A should get better rates of interest, faster processing, first right to loan. Whereas, guy B should get loan at higher rate of interest (because he is risky) and may be banks can even deny entertaining him at all.
CIBIL gives us the power to build our credit report. So if you become responsible and use your credit effectively and with planning, you can build a good credit history with CIBIL, which will help you in long run. Also note that taking a lot of loans without having the capacity is also a negative thing and that can affect your credit report.
Also one hast to be super sensitive and careful with credit card and loan repayment, because one small mistake or being lazy in this area can cost a lot.
What Impact CIBIL reports:-
10% Types of Credit used like Credit cards purchase,Home loan,Car loan etc
10% Recent search of Credit-Do not inquire if you do not want loan or Credit cards
15% Length of credit history,More longer credit history has more impact in good way
30% Credit utilization-How much debt you have compared to your capacity or limi set by Banks
35% Payment History-If you dont miss the payments,It is good and got this score.
All these parameters set together make your CIBIL SCore.
Therefore it is very important for us to know our CREDIT SCORE which can be had it either
Online (Transunion score along with CIR report and fee is approx.Rs.450/=)or
Offline(This is called CIR report fee Rs.142/=)
Download CIR request form from WWW.CIBIL.COM/accesscredit.htm
Fill up the forms
And pay the fee as asked online between Rs.300-500/=
After successful transaction of fee online you will get CIBIL Registration ID and Transaction ID
Now send the documents to the address below either through Speed post or through Regular post
Credit information bureau(India) India Ltd.
OO BOX 421,Wagle Industrial Estate
P.O-Thane, 400604
Pramodara
Mob No-9999908635
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