Sometimes things that appear simple are not as simple and some things that appear relatively difficult are pretty simple. Checking CIBIL status online falls in the latter category. This article will guide you on how you can check your CIBIL Information Report (CIR) and CIBIL TransUnion Score (TU) and also inform you on how to correct CIBIL report if there is an error.
Credit Information Bureau (India) Limited (CIBIL) is an apex body that was founded in August 2000. Its primary and only function is to collect and maintain credit data of all individuals, their payments and loan records. It also grants a score to each individual based on their payment history and number of defaults. Your score can be anywhere between 300 and 900, with 300 being a very poor score while 900 shows an impeccable credit record. Banks and other financial institutions often pull out your report to evaluate your credit worthiness and only if an individual is above a certain cut-off score, depending on the lending institution’s internal policy, then that person is granted a loan. Or else, his or her’s loan application is rejected. This also implies that a person with a higher credit score has a higher chance of getting his loan approved. Therefore, a credit score should be as important for an individual as it is for lending institutions.
With the changing times and new trends, CIBIL TransUnion score 2.0 has now introduced a risk index for individuals who have a credit history of less than six months. The range is from 1 to 5, with 1 implying “high risk” and 5 implying “low risk”. Once your credit data is more than six months old, the score is then ranged between 300 and 900.
You may occasionally wonder that although you are doing all things right, you are still not eligible for a higher credit limit on your card; your loan application was rejected without a reason. Why? Well, the answer could lie in your CIBIL score. It is easy to extract your report. Just follow the following DIY steps to receive your report in a day’s time.
Step 1: Log on to cibil's official website.
Step 2: Navigate to the Online Score request form
Step 3: Fill in your personal details like your name, address, date of birth etc.
Step 4: Click on to “Proceed to payment”
Step 5: Make a payment of Rs. 500/- as fees to CIBIL
Step 6: Answer a few questions about your credit cards and loans as part of an Authentication process
Step 7: In case the Authentication process is unsuccessful you may need to complete a small procedure to receive the CIR and TU score through express delivery
Step 8: However, in case the Authentication process is successful you can instantly view your CIR and TU score, which is also emailed to the email address as entered in the form.
In an event when you do not have access to internet or online payment methods, you can also request the CIR and TU Score through regular mail. All you need is a printed copy of the score request form, a copy of your id proof and address proof and a DD in its name to process your request. Once your request is received by CIBIL, a printed copy of your report shall be sent to you.
Please note that you must fill in the correct details in all the fields. Also do make sure that you do not ask a bank or any other lending institution to help you request your report as it can negatively impact your score.
This report will help you find what your score is. In case your score is low, you can start planning on how to boost your credit score. If you find any discrepancies in the report, you can raise a CIBIL dispute. If the dispute is resolved in your favour, your credit score is readjusted to reflect the positive changes.
It is advisable that you check your CIBIL score but only if you intend to approach a bank or other financial institution to apply for a loan or credit card. The reason is because as part of their evaluation process, banks and lending institutions request for your CIR and they are sent an abridged copy of the same. Most loans that are approved are of individuals who have a score of 750 or more, which is also mentioned on the CIBIL website. If you notice that your score is easily above the said mark, then you may apply for the loan. Although, a CIBIL score of 750 or more does not guarantee approval of loan or credit card but it does increase your chances. In case you notice the score is not as high as you expected it to be you can always first work on ways to enhance credit score and then apply for a loan or credit card because then the chances of approval will be high.
Managing your credit score is no rocket science. You just need to move in the right direction and the entire (credit) world will be at your feet.
Happy Credit to you!