All you want to know about Credit score or Cibil Score

Last Updated On: Oct. 20, 2019, 1:36 a.m.
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CIBIL or Credit Score

 

The Credit Information Bureau (India) Limited (CIBIL) is the most popular of the four credit information companies licensed by Reserve Bank of India. There are three other companies also licensed by the RBI to function as credit information companies, however, the most popular credit score in India is the CIBIL score. CIBIL Limited maintains credit files on 600 million individuals and 32 million businesses. CIBIL India is part of TransUnion, an American multinational group. Hence credit scores are known in India as the CIBIL Transunion score.

CIBIL score is a 3-digit numeric summary of your credit history, rating, and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating is. A credit report is a record of borrowers credit history from various sources such as banks, financial institutions, credit card companies, etc.

 

Credit score range

A credit score ranging from 750 to 900 is considered an excellent credit score. The banks, NBFCs and other online lenders prefer candidates with such a credit score. If you have such a credit score, you can be assured that you will be eligible for any credit product. The following will help you understand the range of credit score and their meaning.

 

                                          

 

Factors affecting CIBIL score or Credit score

  • Bill payment history: This means how timely you pay your bill and this is a very important factor that affects your credit score as it contributes 35 % of your credit score. Serious payments issues can destroy your credit score and it will make difficult to take loans in future.
  • Debt levels: The total amount of debt you carry also affects your credit score as it comprises 30% of your credit score. Having high balances or too much debt can heavily affect your credit score. The good news is that your credit score can improve quickly as you pay down your balances.
  • Age of your credit history: How old is your oldest credit account? If you are having an older credit account it can possibly help you as it will show that you have experience. Credit history contributes 15% of your credit score.
  • Types of credit on the report: There are two types of credit accounts, revolving accounts, and installments loans. Having both types of accounts on your credit history shows that you have experience in handling various types of credit accounts and it contributes 10% to your credit score.
  • Credit inquiries: Each time you submit an application that requires a credit check, an inquiry is placed on your credit report showing that you've made a credit-based application. Inquiries make up 10% of your credit score.

 

Steps for checking your CIBIL Score:

Here is how to get a free CIBIL report once a year:

Step 1: Go to the CIBIL website

Step 2: Fill out the  provided form that requires your necessary information such as name, contact number,  email address and click continue to step 2

Step 3: Fill out the additional details about you including your Pan number. Make sure to enter your Pan details correctly to proceed to the next step.

Step 4: Answer all the questions correctly about your loans and credit cards, based on which your CIBIL score will be calculated, and your completed credit report generated.

These are the four main steps to be performed to check CIBIL score  However, the ones below are a continuation of the above listed main steps.

Step 5: You will be suggested various paid subscriptions ( if you need more than one report in a year). If you require only a one-time, free credit score and report, then proceed to select No Thanks at the bottom of the page.  This is the stage where your account is created, the confirmed message is displayed on the following page.

Step 6: Using your login and password that was created in Step 2, you can log in to your account.

To proceed further, you need to authenticate yourself.  You will receive an email on your registered account. Click on the link and enter the one – time password provided in the email. You will be prompted to change your password and login again.

Step 7: Once you log in, all your personal details will be auto-populated by default ( please provide the accurate information if the fields are not auto-populated). Please enter your contact number and click submit.

Step 8: Once you submit that form your dashboard will be revealed with your cibil score. Additionally, you can get your credit report on the dashboard.

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