TransUnion CIBIL, incorporated in 2002, is India’s first credit information company, commonly referred to as Credit Bureau. TransUnion CIBIL is licensed by RBI and is also governed by the Credit Information Companies (Regulation) Act of 2005. CIBIL stands for Credit Information Bureau (India) Limited.
This company analyses credit information (payments pertaining to loans and credit cards) and provides a three-digit credit score. Based on your credit history, this score can range between 300 (lowest) and 900 (highest).
Now that we know what a CIBIL score is, let us go through few FAQs to clear off all doubts regarding CIBIL score and loan approval.
- How can I view my CIBIL score?
Login to https://www.cibil.com/personal and click on GET YOUR CIBILSCORE.
Register yourself and create an account. Once you register, you will be able to view your CIBIL score. You will also be able to download the CIBIL report. If there are any mistakes or grievances, you can follow the steps in https://www.cibil.com/consumer-dispute-resolution for dispute resolution.
- What Is A Good CIBIL Score?
Lenders consider a score of 750 or higher to be an excellent CIBIL score. If your score is high, it portrays that your credit score is good and makes the chances of loan approval higher. The lender will also consider other factors such as your income and loan repayment capability before approval of your application for loan.
- Can I Get A Loan With A Poor CIBIL SCORE?
CIBIL score and report only serve as a first information report to financial institutions. Assumption that you cannot get a loan with a poor CIBIL score is not entirely true. Lenders also consider steady source of income as a major criterion to approve a loan. Lenders will consider your loan repayment ability before loan approval. If you are still worried, you can add a co-applicant or guarantor with a steady income or high CIBIL score to increase your chances of getting a loan approval.
- What Is My Credit Score If I have Never Had A Credit or Used a Credit Recently?
If you have never paid an EMI or never owned a credit card, your credit score will be -1, marked by NH (No History) in your CIBIL report. If you have an inactive credit in the last 36 months, your score will be 0 (zero), marked by NA (Not Applicable) in your CIBIL report.
- Does NA or NH Affect Loan Approval?
Not necessarily. Explain your prospective lender the cause for the period of credit inactivity. If there is no history, your income and loan repayment ability will be your main yardsticks for loan approval.
- How Do I Maintain A High CIBIL Score?
Maintaining a good CIBIL score is easy if you practice these 6 steps below:
- Pay your dues on time: On time payments reflect as a positive in your score and report.
- Maintain low balances: Be careful not use too much credit. Have a check and control. Maintain a healthy credit mix: It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards).
- Do not apply for multiple unsecured loans: These give a negative impact.
- Take new credits with caution and restriction: Seeking too much credit reflects that you live on credits alone. Be prudent and always cautiously apply for new credits.
- Check guaranteed, co-signed and joint accounts: You are equally liable for any missed payments in any of these accounts. Negligence by your mutual partner to pay off debts, EMIs or credits will have a negative impact on your CREDIT score.
- Frequently go through your credit history: Login and check your CIBIL Score and Report regularly. If there be any disputes, raise and get it corrected immediately.
- What are the factors that affect CIBIL score?
Six factors affect the CIBIL score.
- Payment History – Making payments, dues or EMIs on time will have a positive impact on the CIBIL score
- Credit Mix – Having a mix between secured (e.g., Home loans, Vehicle loans) and unsecured loans (e.g., Credit cards, Personal loan) is likely to have a positive impact on the CIBIL score.
- High Credit Balance – An increase in your credit balance signifies a burden to repayment. This may have a negative impact to your CIBIL score.
- Multiple Loans – If you have multiple loans and credit cards, the debt burden on you will be high. This might have a negative impact on your CIBIL score.
- Depth of credit – It measures the rules affecting the scope and accessibility of credit information
- Number of accounts opened to the number of accounts closed
References:
https://www.cibil.com/personal