Monday, 24 August 2015

How to read your CIBIL report

While one may obtain his CIBIL report, getting to understand it may be a challenge. It may be just like reading one's blood test or any other medical report. Without having to be able to understand, pulling out the CIBIL report may turn into a futile exercise involving both time and money.

Apart from giving the credit score, the credit report captures host of other data that can be primarily segmented into following three main sections:

Personal Information
Account Information
Enquiry Information

Personal Information:

A CIBIL report carries the following personal information of an applicant: while reading this, check every information for accuracy

Personal information like name, all address reported to any bank, date of birth, contact numbers, email account details
Identification details like PAN  number, passport number, ration card number or Adhaar number that would have been given to any financial institution
Employment information

Account Information:

This section includes structured details of both past and current loans and credits.

Name of the Bank or NBFC
Type of loan account – for eg. A loan or a credit card
The loan account number
Ownership of the loan
Account Details like
Credit Limit [the maximum allowance of usage on a credit card]
Sanctioned Amount [Loan amount that has been approved]
Current Balance [ ]
Cash Limit [Approved limit of cash that can be withdrawn on credit card]
Amount Overdue [Total unpaid amount due on an earlier day)
Rate of interest
High Credit [indicates the maximum outstanding on your credit card at a given point of time. This impacts your score and also the underwriter's decision
Repayment Tenure
EMI amount [monthly installments due]
Payment Frequency
Actual Payment Amount

Dates
Date Opened/Disbursed – indicates date of loan disbursement
Date of last payment [received at the time of generating the report]
Date Closed [date when the loan tenure got over]
Date reported and certified – means, the last update that the Bureau has made on that particular account
Payment History of the last three years of the loan tenure

Days Past Due  which indicates the number of days, past the due date of EMIs, when the payment was actually made. Here, “000” indicates a payment made on time; whereas “xxx” indicates that the bank did not report to the Bureau for the particular month.

Collateral In case of a secured loan, details of the security or collateral are mentioned, like the value of the asset and type of asset.

Default Status  this indicates 'negative flags' if any on the applicant's loan history.

Enquiry Information:

Whenever a lender pulls out your record from bureau, it gets captured on your CIBIL report and is called “Enquiry”. This section carries following details:
Name of the Banking Institution
Date of Enquiry
Purpose of Enquiry [type of loan]
Enquiry Amount

In this section too, you need to cross-check and verify, whether or not, you made these enquiries. You may be exposed to “Identity Theft” in case your bureau report captures an enquiry for a credit facility that you never applied for.

Also please take a note that an enquiry is only run on bureau report if you apply for a credit facility and submit your documents. In the event of a telephonic enquiry only, the bank does not run enquiry.

It is advisable to go through this post while reading your CIBIL report.

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