CIBIL is a repository of information that collects and maintains the data provided by Banks and NBFCs, where individual have or had loans in the past. It has information about individual past and present repayment history and the status of individual loan accounts, personal information such as individual identity information, employment history, contact information, etc. It also keeps track of all the enquiries that individual has made for credit from various banks and financial institutions.
faq
Welcome to Credit Help India, We help you to improve your credit.
A CIC collects information about an individual’s payments on loans and credit cards. This information is shared by the Banks and other Credit institution, on a monthly basis. This information is then used to generate your Credit Report, which includes your Credit Score. This score and your credit report is then looked by various institutions for evaluating your loan application.
Credit help India is a leading and premier credit advisory company run by professionals who have decades of experience. It aims at providing the requisite help to customers to build and boost their Credit Scoreand Credit Rating
You can apply online by visiting CIBIL Transunion website here. You will need to go through a three step process. In the first step you will be asked to fill an application form. In the second step you will need to make an online payment of Rs.550/- and in the third step you will be asked a few authentication questions.
If you are able to successfully answer the validation questions, your CIR will be generated immediately and can be downloaded using your log in ID and password . If your authentication fails, you will receive an email from CIBIL requesting you to provide an ID and address proof.After furnishing these details you can have copy of your mail
The first one is the entry level Plan (Rs 999*) which helps you to Know your Credit The second is a Basic plan (Rs 9999*) which is an entry level program which helps you to Understand your Credit and will provide you a Credit Experts recommendations. The Third is a Standard Plan (Rs 12,999*) where we offer a personalised credit expert which helps you to Build your Credit. The fourth is our Flagship Premium Plan (Rs 17,999*) in which we offer personalised services .For more information visist Packages section.
It's very natural to fluctuate the credit scores. Your credit reports amend details as reported to credit bureaus. Bnaks and Lending companies report any case, including the late payment of credit cards or EMI, to the Credit Bureaus, and the Credit Bureaus update it every month .
During the transaction of time, credit scores can also shift. You will find that the three digit numbers will change if the credit scores are tracked over time, even if the credit score is produced by the same Credit Bureau .
Although you understand now that credit scores are totally natural to fluctuate, you can wonder, "What are they like?”
Your credit score is a snapshot of your credit behaviours and of your credit report information that is frequently updated. Based on your credit reports records, credit scores are determined. This information is updated by lenders, collection companies These data could include balance adjustments, opening of new accounts, payments to existing accounts, or closed accounts that fall off after the expiry of a term.
An excellent credit score of between 750 and 900 is regarded. The banks, NBFCs and other online lenders prefer such a loan score to candidates. You can be assured that you are qualifying for any credit product if you have such a credit score. This allows you to consider the range and importance of the credit score.
|
Credit Score Range |
Grade |
What it means? |
|
750 – 900 |
Excellent |
Eligible for low interest rates and higher approval chances. |
|
700 – 749 |
Good |
Can become eligible for better interest rates. |
|
650 – 699 |
Fair |
The options are limited, but credit approval is possible. |
|
600 – 649 |
Low |
Higher interest rates on loans and credit card approval could be harder. |
|
Below 600 |
Immediate Action Required |
Approval chances are very low. |
The table shows very clearly that a loan score of 750 or higher is considered a positive loan score that could help you take advantage of many loan opportunities.
A credit bureau (such as TransUnion CIBIL, Experian, CRIF High Mark and Equifax) will consolidate your past credit history and repayment conduct. Usually a credit score ranges from 300 to 900, with 900 as high as possible.
More creditworthiness is attributed to you and vice versa. A score of approximately 750 or higher is usually considered suitable for a lender like a bank to accept your application.
Here are 5 factors which play a major role in calculating the credit score:
-
Repayment History: The most positive influence on the credit score is the timely repayment of existing credit cards. In comparison, as reimbursement delays increase, the credit score has a growing negative effect. The higher your timely payments percentage, the higher your credit score. This is one of the weighted variables used to measure your score as a trustworthy borrower is noted by a clear timely payment pattern. Banks are optimistic that payments will be made on time. Similarly, even a late payment or two may have a big adverse effect on your loan score as it means that you cannot be counted upon to pay on time. It is a very critical factor in having a good score to pay all EMIs, credit cards and all other bills in time.
-
Number of credit accounts: Credit bureaus look at the total number of loans to assess your credit score (Vehicle, Home,Credit Card ,Education, Personal loans etc ). A greater number of credit accounts mean a selection of lenders found you eligible for the loan. However, compared with other considerations, this element is weighed relatively lightly. It's not advisable to request multiple loans or cards at once just in order to raise your score and get more credit accounts. This means you are in desperate need of credit, when looking for credit for several lenders. If there is a relatively large amount of loans and credit cards in relation to the reported income, the credit score will have a negative effect.
-
Utilization of allocated credit limit: When you have 3 credit cards with a Rs. 1 lakh credit limit each, and you tend to almost always use the credit line in full, the risk is high that the banks might think you are hungry for credit. Likewise, it is likely to be denied if you do not use the 3 credit card and apply for the 4th card, so banks can consider that you have overly unused credit limits. Therefore it is better to always use less than 30 % of the loan cap to best influence your credit score.
-
High percentage of unsecured credit: The best option for your portfolio is to provide a combination of secured credit (Home Loan, Car Loan) and uninsecured credit (personal loan, credit card). The effect on your credit scoring is most positive. A combination of various types of loans to show fast reimbursement would have a positive effect on your ranking. If your portfolio includes a high percentage of unsecured loans, your credit score will be adversely affected.
-
Length of credit history: The longer your credit history, the better the banks are, the more accurate knowledge they have about your credit behaviour. If you hold a credit card for three years, for instance, future borrowers are able to see a substantial amount of time for the repayment behaviour on the card. Your banks are sceptical while your credit is fine, since they do not know enough about your payment habits. It is also advisable that you do not give up older credit cards as they offer prospective lenders a more complete credit image.
-
Excessive loan applications: The lender will receive a copy of your credit reports when you apply for a new loan or credit card to decide whether you are eligible for a loan. This is regarded as a credit investigation. Too many credit inquiries have a negative effect on your credit score without a corresponding approved loan. If you notice a lender has declined your request for a fresh credit, other lenders are most likely to also refuse your request for the loan. Moreover, even with the acceptance of your loan application, too many requests would possibly have a detrimental effect on your score within a short period of time.
-
Number of negative markings: One of many things – written-off, settlement, DPD, suit filed are negative flags in your credit report. Again, this is a highly weighted factor that might significantly limit your eligibility for a loan by a reasonably high couple of negative signs. A negative sign demonstrates that in the past, you have not handled your credit properly and are warning future lenders.
Credit is extremely important in the accomplishment of many of your goals and in the emergencies triggered by a variety of causes. A decent credit score is indispensable if the right loan is to be achieved at the right time. Credit Score applies to your credit behaviour.
Each credit-related behaviour of yours affects your credit score. It begins immediately with your credit application and continues with each refund until the credit instrument is closed. Both acts affect your credit score in a positive or negative way, depending on your credit behaviour.
Borrowings , along with credit card, overdrafts, credit limit etc, are an essential form of credit. It is therefore incorrect to show that loans will harm your credit. Know you won't even get a credit score without any credit. And it can be difficult to receive credit like a chicken and egg scenario without a credit score. But after the end of the day, a vast range of options are open to those who choose to use credit but have no history of credit. However, there might be some circumstances in which the credit effect may be negative.
Determinants of Your Credit Score
A credit score will be assigned according to several variables. It is important to know different factors that decide your credit score before knowing how the use of loans affects your credit.
Your Credit Accounts: The number of loan and credit card accounts that you have and if they are considered positive or negative accounts.
Repayments on your Credit Accounts: Prompt repayments on your credit accounts is one of the main components of a credit score.
Credit Mix: A good balance of secured and unsecured accounts is the cornerstone of a good credit score.
Credit History: A strong and long loan relationship works a lot for your loan worth. Many new to the loan would have to slowly and gradually build it up.
Credit Utilisation Ratio: Your credit card is really important to use. You cannot reach the specified limit of 30-40% in your utilisation ratio. This shows you're not a starving creditor.
Number of Hard inquiries: Each application for credit is a hard inquiry. The more the number of hard inquiries in a short period of time, the lower your score can go.
A number of information about your accounts, requests and public records is included in the credit report. In all your credit reports, you will also find the following kinds of detail, regardless of workplace.
Personal information
-
Complete name and other names, such as surnames before marriage, nicknames and your middle names, you might have used in previous loan applications.
-
Birth date
-
Current and prior addresses associated with your credit accounts.
-
Phone numbers associated with your credit accounts.
Accounts
-
Current and historical credit accounts from the past, including revolving (Credit Cards) and installment accounts (mortgages and loans).
-
Name of the creditor/lender.
-
Opening date and/or closure.
-
Status, such as current or past due.
-
Credit limit (for credit cards) or loan amount.
-
Balances, such as current and highest.
-
Payment history.
Inquiries
-
Banks and Lending Institutions that have pulled your credit report.
-
When your report was accessed.
An significant part of a financial journey is a credit report. This is vital because we all find that one or the other time in life we need credit. It may be for purchasing an asset such as a Home or a Car, financing Education, coping with emergencies such as medical emergencies, financing a marriage, a vacation, or easing crunching at the end of the month.
No matter what the need might be, this form of need is credited. What you need to apply for credit, though, is a decent credit score. Not only is a credit responsible, it keeps your credit report clean. It is a good credit score.
A Clean Credit Report
What is a clean report about a credit? The report is error free, and any feedback will harm your credit health and end up impacting your chances of earning credit the next time you need a credit card or loan.
Six basic steps to help clean up your credit report are given to you.
|
Steps to clean up your Credit Report |
What it means |
|
Get your Credit Report copy |
You can get it for FREE at Credithelpindia. |
|
Verify the information |
Check if the information given in the report is all correct. |
|
Get rid of the errors |
If you encounter any error, remove it immediately. |
|
Evaluate the number of your credit accounts |
If you have many accounts, it’s time to free up some account and improve your debt to income ratio. |
|
Resolve negative accounts |
Negative accounts reduce your credit score. Resolve these accounts at the earliest with Credit Help India’s help. |
|
Improve credit score |
Improve credit score to get the best loans and credit cards. |
Step 1: Obtain A Copy Of Your Credit Report
You should review your report first of all in order to be able to update your loan report. It is good to either reach out to a competent credit management service like us who can help you understand your credit report and suggest you to take the correct steps to clean up your credit report and boost your credit score. You are not familiar with the credit report and the details it contains and how it affects you.
And it is high time you look at your credit report if you are someone who has never looked at it. Knowing your loan report and its elements will allow you to address your credit report issues more quickly, if any. Check your credit score and study.
Step #2: Verify The Information In The Report
Your credit score is assigned on the basis of the details concerning your credit conduct, which your lenders submit to the Credit Bureaus. It provides information on all your credit accounts, whether open or closed, your repayment history: whether it has been replaced or is not repaid promptly, your credit use ratio, your credit mix, your credit history and your PAN's extreme request. It includes all your credit accounts, whether open or closed.
The information in your credit report is very important to review. Not all will be right, some mistakes may have gone into your credit report.
Step #3: Get Rid Of The Errors In The Report
Errors on your credit report may have an incorrect effect on your credit score, often reducing your score. Your credit report must be checked as much as possible to decide if any mistakes exist in your report.
It's very easy to correct errors in a simple dispute resolution procedure if you notice any errors in your report.
The most commonly found errors in a Credit Report are:
|
Error Type |
What it means |
Effect |
|
Identity Issues |
Incorrect PAN or personal information |
Medium-High |
|
Account Errors |
Wrong reporting of credit limit, loan balances, account status |
High |
|
Identity theft |
Someone else uses your identity and conduct fraudulent transactions under your name |
High |
-
The PAN is the basis for a credit score. PAN numbers or names can be mixed with those of another person with similar documents due to surveillance or clerical error.
-
Such mistakes which show an incorrect credit cap, incorrect loan account balances, closed loans as Settled or Written Off or same loan more than once.
-
Credit report errors can also be attributed to identity fraud, in which a person uses another person's identity to receive credit. These are more serious in nature and should be reported to the Police .
Step #4: Evaluate The Number Of Credit Accounts You Have
A clean credit report should show your creditworthiness as well as being error-free. You should focus on the amount of your credit accounts while you are finishing sorting the errors on your credit report.
It might be the time for you to review the situation and try to close some if you have multiple credit accounts such as loans and credit cards. You will find it hard to get new loans if you pay EMIs above or near a specified cap of 30% of your gross income.
It is good in such cases to plan a budget to prepay such loans so that a portion of your revenues is issued.
Step #5: Work On Getting Negative Information Off Your Report
Negative details such as settlement, written off, suit filed etc could be due to your earlier delay, or default on repayment of loans and credit cards, . A loan report with negative details is converted into a low loan score that can affect your future loan prospects.
It is therefore good to get your credit report off the negative details at an early point. Your report on a representation or submission from your end cannot just be deleted.
However, experts warn you that you will stay on your credit report when it comes to significant negative data such as payments or defaults. It
Step #6: Start Working Towards Building A Good Credit Score
There will always be a need for credit. It cannot be achieved immediately or over a period of weeks to build a good credit score. It needs continuing attempts to be liable for a longer period of time.
It could take three months for some people, and it might take up to a year for some people, depending on the size of the report and the amount of negative information you receive.
As the credit score and credit report have recently grown significant, it is not possible to be lax and have a good score and report.
A variety of entities can access your Credit Ratings and Credit Reports. Some of the organisations and individuals that can draw your reports or a ranking are here:
-
Banks: When you apply for a loan or Credit Crad Bank will pull out your Credit Report to verify your creditworthiness. And the less credible you are, the more likely you are to overwrite and give up your accounts. If you opt for overdraft facility , your credit will also be pulled, and this is known as a credit line.
-
Creditors: Present or prospective creditors — such as issuers of Credit Cards, Auto Loans and Credit Lenders — may draw the Credit Report to assess your creditworthiness. Credit history is an important factor in the assessment of whether a Loan or Credit Card is to be issued, and (b) the terms of that Credit Card or Loan. The higher your credit, the more likely it is that a loan with a positive interest rates would be accepted.
-
Employers: Now a days employers loke Banks, NBFCs and some of the IT companies have started checking Credit Report of a an employee before offering a job .So it is very critical that you keep your Credit Health and Credit Report in good shape that you job application is not rejected on the basis of bad Credit History.
A credit card cannot qualify for a set minimum credit score. Each company with bank/credit cards has its own card request requirements. Generally speaking, however, if you get a credit score of 750 or higher, you are likely to get a card accepted.
A card with a score of less than 750 may be accepted, but you may be subject to less favourable conditions such as, for example, card with lower limit and annual charges or fee. The lower your Credit Score , the higher your risk of dismissal. It would be very difficult to accept a Credit Card application if you have a score of less than 650.
Another downside of applying for a low score credit card is that it causes your score to go down every time you deny your application. When you have a low score, applying for credit cards means you face repeated rejections and a gradual decline in your score.
It is, therefore, a good idea to review your credit score in order to boost your score and to ensure that your application is accepted before applying for a new credit card.
Here are some quick tips that will help improve your credit score quickly:
-
Pay all your EMISs and Credit Card bills on time. Up to 30% of your credit value is your repayment history. It is therefore very critical that you ensure that you now have a perfect repayment record even in the past. Making complete payments on time would affect your credit value instantly.
-
Get a copy to find and resolve mistakes in your credit report. Often a loan which you paid in full can still be shown as unpaid due to reporting errors by Banks and Lending companies. These mistakes will pull you down your Credit Score unnecessarily. If you challenge and correct these mistakes, your score will be automatically positive. Often a wrong details or misidentify may have a negative effect on your Credit Score Also, search for incorrect entries that may also suggest identity theft in your study. The solution of these problems will increase your Credit Score.
-
Expend less than 30% of your Creit Card limit. for example, If your Credit Card limit is Rs 1 lakh, make sure you do not spend more than Rs. 30,000 on your monthly shopping and purchasings. That means that you do not have a discipline of spending and that your score will decrease. Holding your credit limit consistently within 30 percent will automatically increase your ranking.
-
Do not make several applications within a limited period of time for loans or credit cards. Many assume that by applying to several lenders or by applying with one or two lenders for several items (Home Loan, Car Loan,Credit Card or Personal Loan, they can increase their chances of obtaining a loan. Potential lenders inquire any time you apply for a new loan. Too many inquiries will lead to a decrease in your credit score within a short time span as it means you are 'hungry' for credit.
-
If you have a low Credit Score , don't apply for credit (whether a Loan or Credit Card). Any loan refusal has negative repercussions on your Credit Score. Make sure you're just credit-worthy to apply for a loan once. This avoids loan refusals and the subsequent decrease of the ranking.
One comprehensive report can be downloaded once a year from any of the Credit Bureaus, free of charge, via electronic form.
A credit information report (CIR) provides descriptions of a credit information company's credit history. There are currently four Credir Bureaus(CIC): TransUnion CIBIL , Equifax Credit Information Services Pvt, Experian Services India Pvt Ltd, and Highmark CRIF Pvt. Ltd
The lender asks credit bureaus for your credit report at time you apply for a loan. The details demonstrates how you treat your credit and your monthly payments.
A score of 300–900 is assigned based on this information. The score for the same person with different bureau varies to a certain degree, but not dramatically, because the underlying data are generally equal. The score changes may be due to the weight provided by different offices and their algorithms to various categories of knowledge.
Generally, your credit report must be bought. You must exchange information online, such as date of birth, PAN and email address, in order to purchase online. However, one comprehensive report from every office can be obtained from each office free of charge once a year. This includes all the specifics of a bank's request for a fresh loan in a similar paper. It is also possible, via a dispute settlement procedure, to correct any possible errors.
These reports can be obtained through the web pages of the credit bureaus.
Are you facing the problem in getting loan or Credit card? Are you facing job rejection? Do you want to know and understand your Credit Report? Does your Credit Score is less than 750? Does your Credit report reflect an error? Does your Credit report reflect Settled, Written or Post written off Settled remarks? Are you paying the higher rate of interest on Loans? If you are facing any of the above problem, then Credit help India will provide you the Professional help with the help of our Personalized Credit Expert who will help you to Understand, Build and Boost your Credit to make you Credit Healthy. For any other detailed information. Please write us at care@credithelpindia.com