FREE CIBIL REPORT
Know your CIBIL Score, And Much More
- Repayment History
- Card Utilization
- Credit Line Age
- Credit Mix
- Recent Enquiries
- Loan Settlements
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1. What is a CIBIL Score ?
CIBIL Score is one of the fundamental requirements any person looking to apply for a loan should take care of. CIBIL is the abbreviation for the Credit Information Bureau (India) Limited. This company is India’s first Credit information bureau and, at present, holds the records of all credit-related activities of the people. Banks submit various documents to the bureau usually on a monthly basis. After the thorough analysis of the records, CIBIL generates a report called Credit Information Report or abbreviated as CIR, which is used by the masses. This report has a score on it, which is your CIBIL score. This score can be given to either people or companies.
2. What is the difference: CIBIL vs. Experian/Equifax/Highmark ?
CIBIL, Experian, Equifax and Highmark are all credit information companies (CIC). These companies collect the credit history and activities of their borrowers and make a report of those records thereby assigning a score. They all work on the same principles, but CIBIL continues to be the most dominant choice and the most reliable one.
3. What is considered a good CIBIL ?
CIBIL issues three-digit numbers as credit scores for companies or people. The score range 300 to 900. People or businesses with the CIBIL score of 300 are considered a bad bet for the loan providers. A bank or a financial institution or a non-banking financial company looks for a score of at least 750. A score of 750 instantly portrays your reliability and ability to pay off the debt you take as per requirements quickly. Along with a higher chance of getting the loan, you also find that many banks and companies may offer you impressive and attractive offers as well.
4. What does a low CIBIL score mean ?
With a low CIBIL score, a company or a person will most likely be denied the sum of money. And even if the procedure for the loan begins, the person or the company may have to face many difficulties to get the loan sanctioned. Luckily, there are various ways to which we can fix the CIBIL score.
5. Is a CIBIL Score checked before applying for a loan ?
Every bank or lender checks the CIBIL score before sanctioning the loan. The banks or any other kind of lender will only have to put in a “hard” inquiry to get all your details from CIBIL. Your loan application will be scrutinized by keeping your Credit Report and CIBIL score in mind. Enquiries made through Rubique are “soft” enquiries and do not affect your CIBIL score.
6. What is a CIBIL Credit Report ?
A CIBIL Credit Report is an important document. This report is a history of the payments and all other kinds of credit activities of the loan holder. The document also provides pictures of the person looking for the loan. The loan providers can quickly look at the document to look through all the details of the person or the company applying for the loan. This document will show all the payments and borrowing history of the person. In some cases, the report also gives credit card payments, missed loan repayment dates as well as the total credit limit of the person or the company applying for the loan. The CIBIL Credit Report contains essential details, some of the important ones are mentioned below:
- (a) Personal details.
- (b) Current Loans.
- (c) Settled or previous loans.
- (d) Any defaults in payment or defaults on loans.
- (e) The details of employment and the details of the income.
7. Why is the CIBIL report important ?
The CIBIL Credit report is a vital document for companies as well as people. The importance of this report is given below:
- The CIBIL Credit Report gives comprehensive details about the person or the company’s past credit history.
- The Credit Report gives all the details about the person’s buying and spending habits to the lenders.
- For the people or the companies, the CIBIL Credit Report shows the areas which require immediate attention. Along with this the report also shows the strengths and weaknesses of the said person or the company.
- Provides transparency between the lender and the borrower. All the information in one place is favorable for both parties.
8. Factors that affect a CIBIL Score
There are many factors which affect your CIBIL score. There are specific practices done on the borrower’s part, which can have an adverse or good effect on the CIBIL score. Here are a few factors which can affect your CIBIL score:
- (a) Payments: Timely payments for your loan interest will give you a healthy credit score. If you miss out on repayment date, or if you do not pay the amount, your CIBIL score will decline.
- (b) Negative Marks: CIBIL uses negative marks for various purposes such as marking for defaults in payment or marking for foreclosure or for settled. Whatever the case maybe it, a heavily marked credit report is not liked by the lenders, be it prospective lender or the existing lender.
- (c) Longer the Better: The lenders prefer longer histories on a credit card or credit history. A longer and an okay credit history are better than a newer credit history of two-three years with all green flags. Banks find older credit history holders more reliable than the newer ones.
- (d) Hard Enquires: Hard enquires are those enquires which are made by the lender with respect to the borrower’s credit report. It must be noted that if there are multiple lenders accessing your Credit Report, your CIBIL score will drop and will give a bad score. Furthermore, hard enquires without any loans being sanctioned to you speak about your reliability to repay the money you borrow. Enquiries made through Rubique are “soft” enquiries and do not affect your CIBIL score.