CIBIL score is a three-digit numeric indication of your creditworthiness. The score ranges from 300 to 900, with 300 being the lowest and 900 the highest. It is generated by TransUnion CIBIL after taking into consideration the information listed in the credit report. A high score depicts good credit history and responsible repayment behaviour. The closer the score is to 900, the better chances you have of getting a loan or credit card application approved by the lending institution. Most institutions tend to prefer applicants with CIBIL scores of 750 and above.
Founded in 2000, Credit Information Bureau (India) Limited (now known as TransUnion CIBIL Limited) is the premier agency for providing CIBIL scores and CIBIL reports. The credit bureau maintains the records of all credit-related activities, such as loans and credit cards, of individuals and companies. These records are provided by banks and other financial institutions on a periodic basis (mostly monthly), and based on this data, the credit bureau issues the reports and scores.
As per the directives by the Reserve Bank of India, all credit information companies in the country, including TransUnion CIBIL Limited, are required to provide one free credit report on request in a calendar year. The report will mention the credit score, among other things.
To view your free CIBIL score and report, visit TransUnion CIBIL’s official website and go to the “My Account” tab on the top right side of the screen. Click on “Get your Free Report” link and you will instantly get access to your free score and report. Should you not see the “Get your Free Report” link, it is possible that you may have already applied for a free CIBIL score and report for the year.
To get a free CIBIL score and report, an applicant needs to follow the below-mentioned steps:
Step 1 - Create Account - The applicant would first need to create an account on the website of TransUnion CIBIL by setting up a username and password. The individual would then need to provide his or her name, email ID and mobile number.
Step 2 - Enter Personal Details - The information required from the applicant would include date of birth, address, identity proof like PAN and Aadhaar number.
Step 3 - Verify Your Identity - An OTP will be sent for verification of details.
Once the above steps are completed, the individual will be able to view his or her CIBIL score and report.
Your CIBIL score plays a significant role at the time of availing credit, particularly for loan approvals. Financial institutions will check your CIBIL score through the credit bureau. The score gives lenders an idea about how much risk they will be taking on by extending to you the funds that you requested. A score above 750 can help you avail loans much faster and easier.
If the rating does not meet the lender’s expectation, then your application will stand to be rejected. It must be noted that there is no set standard for the minimum score an individual must have to avail credit - it will differ from one lender to another. Now, if the lending institution is satisfied with your three-digit number, it will move on to assess other factors before approving the application. Given that the CIBIL score is the first impression that lenders have of you, you must strive to ensure your number is on the higher side. This increases the prospects of you getting a loan or credit card.
An individual’s CIBIL score is taken into consideration by different entities for several reasons. Here’s a look at a few of them:
Your CIBIL score is one of the many factors that determine whether or not you are eligible for credit. Since the rating plays such an important role, it is necessary that you undertake measures to increase this number if it isn’t already on the higher side. Here are some steps you can undertake to increase CIBIL score:
Ensure timely repayments - You need to make sure that all your bills, including loan repayments, are always paid on time. See to it that you refrain from making partial or delayed payments or even defaulting on payments as these will portray you as an undisciplined credit payer and pull down your CIBIL score by many points.
Limit number of credit inquiries - When lenders check to see your CIBIL score, they run a hard inquiry on the CIBIL report. Such inquiries are recorded in your credit report, and every inquiry has an impact on your credit rating. If you apply to several lenders, all of their inquiries will be reflected in your credit report, which does not work too well for you as lenders will view you as a credit-hungry customer.
Check CIBIL report for inaccuracies - Make it a habit to regularly go through your CIBIL report. Sometimes, a low rating can be because some data is incorrectly listed, and not due to any fault of yours. If you do spot a discrepancy, raise a CIBIL dispute over the same to get it rectified.
Increase credit limit - A credit limit is the total amount that can be borrowed via a credit card. To raise your score, request the credit card issuer to increase your credit limit. You, however, need to make sure that you do not exhaust the entire limit. Until your credit rating reaches at least 750, it is recommended that you do not spend more than 50% of your credit card limit.
Maintain healthy mix of credit - The kind of credit you hold - secured and/or unsecured - has an important role in determining your CIBIL score. Should the proportion of unsecured credit, such as personal loans and credit cards, be on the higher side, you will be viewed as a risky borrower. Increasing the share of secured loans, such as home loans and car loans, and ensuring timely repayments of the same, will help raise your CIBIL score.
Why is it necessary to have a high CIBIL score?
Your CIBIL score plays a significant role at the time of availing credit, particularly for loan approvals. Financial institutions will check your CIBIL score through the credit bureau. The score gives lenders an idea about how much risk they will be taking on by extending to you the funds that you requested. A score above 750 can help you avail loans much faster and easier.
If the rating does not meet the lender’s expectation, then your application will stand to be rejected. It must be noted that there is no set standard for the minimum score an individual must have to avail credit - it will differ from one lender to another.
How can I to raise a dispute if I find errors in my free CIBIL score and report?
Here are the steps to follow to initiate a dispute with the credit bureau:
Step 1 - Login to myCIBIL.
Step 2 - Go to Credit Reports section. Navigate to Dispute Center and click on Dispute an Item.
Step 3 - Complete the Online Dispute Form.
Step 4 - Select the section for which you want to raise a dispute.
Step 5 - Enter a value for the disputed field
Step 6 - Press on Submit
CIBIL generally takes about 30 days to resolve a dispute, depending on the time taken by the credit institution to respond.
What are the various sections of a CIBIL report?
The key sections of a CIBIL Report are:
What is a control number?
The control number is a 9-digit unique number that helps the credit bureau locate your CIBIL report. It is mentioned in the top right corner of your report.
How can I increase my CIBIL score to 750+?
Your CIBIL score is one of the many factors that determine whether or not you are eligible for credit. If you have a low CIBIL score, here are some steps you can take to increase it:
**Ensure timely repayments - You need to make sure that all your bills, including loan repayments, are always paid on time. Refrain from making partial or delayed payments or even defaulting on payments as these will portray you as an undisciplined credit payer and pull down your CIBIL score by many points.
**Limit number of credit inquiries - When lenders check to see your CIBIL score, they run a hard inquiry on your CIBIL report. Such inquiries are recorded in your credit report, and every inquiry has an impact on your credit rating. If you apply to several lenders, all of their inquiries will be reflected in your credit report, which does not work too well for you as lenders will view you as a credit-hungry customer.
**Check CIBIL report for inaccuracies - Make it a habit to regularly go through your CIBIL report. Sometimes, a low rating can be because some data is incorrectly listed, and not due to any fault of yours.
**Increase credit limit - A credit limit is the total amount that can be borrowed via a credit card. To raise your score, request the credit card issuer to increase your credit limit. You, however, need to make sure that you do not exhaust the entire limit.
Maintain healthy mix of credit - The kind of credit you hold - secured and/or unsecured - has an important role in determining your CIBIL score. Increasing the share of secured loans, such as home loans and car loans, and ensuring timely repayments of the same, will help raise your CIBIL score.
