CIBIL stands for credit information bureau India limited, is the India first credit information company or credit bureau. It maintains records of all financial expenditure related activity of individuals. The records are submitted to CIBIL by a registered member bank or non-banking financial company on a monthly basis. Based on its data, CIBIL issues a credit information report or credit score. It includes the details of individuals spending habits and it shows how much you are on-time to repaid the payments. Your timely payment habit will help you get a home loan, car loan, lowes credit card or an emergency loan when you required.
It is quite essential to know about the CIBIL Report and the pattern of scoring to judge where you might be going wrong and also gives the banks a fair idea about your financial behavior and responsibility. The CIBIL score range is 300 to 900 and out of this 700 or 750 is a good score, if you have scored less than that, then it’s problematic for you getting a loan or credit card.
A bad credit score is generally the one that is less than 650. A credit score is a three-digit number in the range of 300 to 900 that is issued by a credit rating agency. Why did this happen? These are the causes of a bad score- delayed in repayment, missed payments, extra spending habit, and rest-activity, which need to keep in mind for maintaining good CIBIL score.
A credit report is issued by four credit bureaus in India, which are CIBIL, Equifax, CRIF High Mark and Experian. There are few reasons, why the credit report is important- Offers a single comprehensive report of the customer’s past and current borrowing and repayment history. Gives potential lenders a detailed idea of the customer’s spending discipline and ability to fulfill debt obligations. And gives individuals information on their credit strengths and weaknesses and enables them to take focused to improve their score.
How Can You Check Your CIBIL Score Online?
To check a CIBIL score before applying for a credit card or loan, basically, it’s a good habit to know where you stand. You can check your score online through credit agency, just visit the official site, share your information related to your personal and employment type, after your information they are verifying provided details and within a day will receive credit information report email with your registered ID.
In this report, they explain general things, like the credit score range which is 300 to 900 and out of this 700 to 750 is a good sign for you. In case, if your score is 650, then you need to improve your CIBIL score record.
You have another way, to check your credit score and that is through your PAN card. The procedure is same, open the credit agency website, enter your name as per PAN card, date of birth and PAN card number, also provide your current address, registered mobile number and before you click on submit button you should agree for terms and conditions.
What Is A CIBIL Credit Report And Which Documents Are Required?
A CIBIL credit report is a document of individual’s credit history and repayment record. It provides potential lenders with a detailed picture of individual’s past and current records. With this report, it allows lenders to take a quick decision when they have received new applications for credit or loan. This report is not only useful for lenders same for customer’s in case need quick help.
A credit report is a single unified document that covers your credit history across different lenders. Let’s see following details which are required your credit report
Personal information like name, age, gender and address
Employment details and income
Number of hard inquiries made by potential lenders on receipt of your loan or credit card application
Information on past and current loans along with your payment record
Any defaults on loan
Total credit limit and the amount spent monthly (Credit Utilisation Ratio)
Any credit card payment defaults
Credit score is the most important thing, because, with this lenders will take quick decision
So you want a good CIBIL score than, be disciplined lowes credit card and loan repayments. Before the due date, should pay all the outstanding amount and be a good CIBIL score.