In India, the Reserve Bank of India (RBI) has granted four Credit Information Companies (CICs), viz. Credit Information Bureau (India) Limited (CIBIL), Equifax, Experian and CRIF High Mark licenses to operate. As per a notification from January 2015, banks and financial institutions need to be members with all these bureaus.
Of the four bureaus, CIBIL is the oldest CIC in India. As a result, a credit score has come to be synonymous with a CIBIL score. The CIBIL TransUnion Score is a 3-digit numeric summary of your credit history which indicates your financial and credit health. The higher the score, the higher are the chances of your application getting approved! Further, with this score, the likelihood of an applicant becoming more than 90 days delinquent on one or more loans over the subsequent 12 months can be effectively predicted.
How to check CIBIL score
Currently, you cannot avail of a free CIBIL score or credit report.
What you as an individual consumer can do is, log on to the website and choose to purchase your CIR for a fee of Rs. 500/-. In addition to an application form, CIBIL requires basic KYC documentation such as identity and address proof. What’s more, with various online payments available, the process is streamlined such that you can access your report instantly.
Similarly, purchasing a report from Experian costs Rs. 399/-, while one from CRIF High Mark will cost you Rs. 299/-. Equifax has priced its CIR at Rs. 400/-.
However, Freescoreindia.com makes life simpler by offering a free credit score from Equifax! Simply log on to their website www.freescoreindia.com, fill in a few details, and receive your CIR free of cost!
It is prudent to check your CIR and credit score at regular intervals, and maintain good financial health!