CIBIL Report- Advantages and Hacks!

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CIBIL Report- Advantages and Hacks!

Praveen Sharma
Tuesday, January 22, 2019

Commonly known to most people as Equifax credit score, Equifax is India’s Credit Information Company or Credit Bureau. It is responsible for maintaining records of all credit-related activity of people as well as companies including loans and credit cards. 

Demystifying the CIBIL report!

Continue Reading: Cibil score update frequency

A credit report is an all-inclusive document that contains details of an individual’s or corporation’s borrowing history and repayment record. It offers potential lenders the detailed view of an individual (or company’s) credit-worthiness based upon past and current credit behavior. It lets the lenders have quick access to truthful information when they have new applications for credit. It allows them to analyze and to make a quicker and transparent lending decision.

A credit report can be issued by 4 authorized credit bureaus in India. These are- CIBIL™, Equifax, CRIF High Mark, and Experian. Credit bureaus are responsible for collecting and maintaining records of the credit-related transactions of people as reported by their lenders (whether banks, NBFCs or credit card companies). This data may include details of all loan and credit card repayments including any late or missed payments. It could also include details of inquiries made by lenders on loan or credit card applications made in the past as well as all current loans and credit cards; total credit limit; and other such credit-related information.

A credit report is a comprehensive and unified document that covers an individual’s credit history across diverse lenders over a significant period of time. It is a great way to know where you stand and how much you need to increase CIBIL score in order to avail a loan without any hassle. Your credit report will include the following details:

(a) Personal info like name, age, gender, address, etc.

(b) Details of Employment and income

(c) Number of hard inquiries made by probable lenders on receiving of your loan/credit card application

(d) Information about past and current loans along with your payment history

(e) Any defaults made on the loan

(f) Any ‘Settled’ loans (Partly paid dues accepted by the lender)

(g) Your Total credit limit and the amount spent monthly (Credit Utilisation Ratio) • Any defaults that have occurred on credit card payment

(h) Your Credit score – The most important component of your credit profile which gives potential lenders a fair idea of your creditworthiness.

Reading into the CIBIL Report

If your credit score is unsatisfactory, it might result in your loan application getting rejected. Thus, it is important to know how to improve CIBIL score immediately. Here are a few quick fixes to increase CIBIL score:

(i) Check for any reporting errors or other possible incorrect entries that might be unnecessarily pulling down your CIBIL score. If you recognize any errors, you must file a dispute resolution with the bureau to fix the matter immediately. This will help improve CIBIL score quickly.

(ii) Keep a low credit card balance.

(iii) Try to limit your credit card spending. Cut down by at least 50% to improve CIBIL score considerably.

(iv) Avoid missing any payment deadlines because it impacts your CIBIL score negatively.

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