What is CIBIL?CIBIL stands for Credit Information Bureau of India Limited and acts like a central repository of credit information in India. Most of the banks and financial institutions report data about each of their customers to it.
What is credit score based on?CIBIL maintains following information about each person's credit history:
- Types of credit availed: Example credit card, home loan, auto loan, personal loan etc.
- Recent search of credit: Even an enquiry about any of the loans to the banks is sent to CIBIL and recorded. If there are more enquiries, it may indicate desperation on part of individual.
- Length of credit history: For how long period is the credit history available? The longer history with clean record would translate to high credit score.
- Credit Utilization: How much credit has been availed compared to capacity or limit set by banks?
- Payment history: Payments on time would translate to a high credit score as payments not on time as well as on time are reported to CIBIL.
CIBIL generates a credit score based on all the above information and this information is very useful for banks to decide if they want to give loan to you in future or not. All the banks are now looking at CIBIL report before taking the decision.
Is CIBIL report really important?
Lot of people have faced problems while applying for a home loan because their credit score as per CIBIL is not good enough. You ought to be very careful whenever applying for a credit card and any types of loans and need to make sure that all payments, including credit card payments and any loan EMIs, are paid on time.
How to apply for CIBIL report online?
- Fill up application online: Fill up the form online here. It asks for same basic information like name, address, phone details along with self attested photocopies of identity (Any one: PAN, Passport, Voter ID) and address proof (Any one: Bank statement, Passport, Credit card statement, Telephone bill). At the end it would ask your Loan account number (credit card number in case of credit card). Make sure you fill up the form correctly. Also, it is very important to not divulge your personal details to anyone as they can get all the information about your credit history and other data by applying on your behalf.
- Make the payment online: Once you have filled up the form, and click on “Make Payment” button, you will be redirected to the payment gateway where you can make the payment of Rs 470 by credit card, NetBanking or other ways. Make sure you do not close the page after making the payment as it will redirect you to back to CIBIL website where you will be given a reference number. Please make sure you note it down properly as this will be required for any enquiries. You will also get a receipt of payment which you can print right away and you will also get an email with PDF copy of your payment and other details.
- Authentication: The last step requires you to answer 3 questions which would be related to your credit history. Once you answer these questions, your authentication will be successful and you will get your CIBIL score card in your email in next 4 days. However, in case the authentication step fails, you need to take the print out of the payment receipt, self attested photo copies of identity and address proof and send it to CIBIL address. In this case, you should get back your CIBIL score in next 10 days.