CIBIL is one of the leading credit information bureaus in India. Here’s all the information that you need to know about this institution.
As you might already know, CIBIL is a credit information bureau. They collate the credit history of individuals and companies based on information given by banks and financial institutions. This is used to calculate the Credit Score of those who have a credit history. So, obviously, you can get your Credit Score from them.
Why was CIBIL established?
CIBIL was set up by the Government of India and the Reserve Bank of India in 2000. Today, TransUnion and banks, like ICICI Bank, are major stakeholders.
The idea behind setting up CIBIL was to gather all existing consumer and commercial credit information and pool it for reference. An individual or commercial establishment could have accounts in several banks and may have received credit from different lending institutions. Financial institutions who want to check the credit history of a potential borrower may not be able to get all this information on their own. So, CIBIL, as an information bureau, collates all the information which can then be accessed by these financial institutions in one place.
Additional Reading: A Brief History of Credit Scores
According to his/her credit history, a borrower is given a Credit Score which can range between 300 and 900 with the latter being the maximum score. Credit Score helps the lender understand the repayment track record of the loan seeker and quickly decide on their eligibility. A poor Credit Score will make getting a loan a difficult proposition for the borrower.
Checking your Credit Score
Today, there are many other credit information bureaus in India. These include Experian, Equifax and High Mark. All of them have their method for calculating the Credit Score of an individual or company. However, most of the times the Credit Score of an individual/company are the same across these institutions.
Want to check your Experian Credit Score for free? Click here.
In order to check your Credit Score provided by CIBIL, you need to buy your CIBIL Score and credit report. This will cost you Rs. 550/- and you can have access to the credit report within 3 business days.
Errors in your report
You will need to check your report carefully to see if there are any errors. There are four sections that you need to look at. They are personal information, contact information, account information and enquiry information. Here are the possible errors you could find in these sections:
- Personal information – Your name, date of birth, PAN and other details could be incorrect.
- Contact information – Your address and the mobile number might need to be updated.
- Account information – This section has details such as loan type, the status of the account, date of last payment, balance, outstanding amount, the date the account was closed and other such details. Any of these could be incorrect. This section will also have details on loans that you defaulted on and any loans that were written-off or settled.
- Enquiry information – This section will have information on the recent Credit Score enquiries made by financial institutions, that is, information on financial institutions that checked your Credit Score recently. Ensure that this is is only for those loans/Credit Cards you applied for.
Fixing an incorrect credit report
Got your credit report but found some errors? Here are the steps you should follow to fix errors in your CIBIL report:
- First, visit the CIBIL website.
- Fill the online dispute resolution form. Ensure that you give the correct information.
- Once you submit the form, you will be given a dispute id/complaint id.
- CIBIL will then forward your dispute report to the concerned lender(s).
- If the lender agrees that there was an error in the report, then CIBIL will update the report.
- It will take about 30 days to get your disputes resolved.
Additional Reading: How To Improve Your Credit Score Quickly
Dealing with an uncooperative bank
When the bank is uncooperative and is unwilling to resolve a dispute, you could write a complaint to the bank. If the bank does not respond within 30 days, you can register a complaint with the Banking Ombudsman, presenting a copy of the complaint given to the bank as proof.
Understand that credit bureaus work closely with financial institutions and trust their information more than yours. So, it is best to speak to the financial institution before you fill in the dispute form. Another important point to note is that a majority of people find their Credit Score to have reduced after they have applied for loans. This is mainly because people apply for multiple loans at the same time, leading to the rejection of some loan applications.
It is best to check your eligibility for a loan before you apply. The same goes for Credit Cards. Worried? Don’t be! BankBazaar allows you to check your eligibility before you apply for a loan or Credit Card. Isn’t that great? So, go right ahead!
I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.
The credit reports is a very significant for our lift now because if your score is not good it will affect you if you need to get some loans or mortgages.
very very productive feature.
Due to this non-cooperation of banks lots and lots of innocent peoples are facing problems. There financial credibility stands nil due to this type of clever politics of cruel bankers. The main undue advantage taken by the banks by/through the CIBIL is to deliberatly finish the finicial status of a customer if the customer gone against their buchery. This has to be stopped and the CIBIL Reports has to be open for the customer to rezuvinate their financial mistakes done in absence of mind.
Banks are harrasing some innocent people who have been been caught hold by some credit card companies. I have personally run from pillar to post for some financial issue due to which my name was put in Cibil list inspite of good credit history.. CIBIL has made life miserable of even innocent people.
I saw there are some forums established to fight against banks and CIBIL who are tunring down even genuine applicants of financial products.
God save my country..
Absolutely informative article. At present this tool is being used quite extensively by banks . No doubt for us this type of assessment links are required.
But how to deal with human errors and the attitudal issues of banks which creates total mess for the genuine borrowers.That is why, it is the need to have
openness about sharing of information to the actual borrower also.
these banks do as they like they themselves credit card and then dd without customers request then keep leving late without any customers fault and then put u under cibil u struggle and again request these stupid bank people specially private banks calling system made life hell as they first they request u for their quota and later they show u eys
Be Careful, keep record of all your transactions. This will help you to fight legally. This is really good information, but it is not too easy. Bank never replies until the
complaints are brought to the notice of higher authorities.
Referring to CIBIL it is a jack pot for bank and financial institutions as they get all the powers to blackmail customer. Even if you are not at fault, bank can list your
name as defaulter and you are gone. Funniest part is CIBIL do not believe in customers records or mail.
RBI should govern CIBIL by giving rights to customer to check their credit and correctness of details provided by bank.
SUFFEERRRRR is only word for customer.
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
I Strongly agree with persons who said that there should be openness of CIBIL records, so that Customer can view their records, how can you provide justice by hearing one side of the tale. Be Fair, and do justic to the poor customer, whose life has been made hell by Banks and CIBIL.
Please allow customers to view CIBIL records.
Hi Jay and others, gear up to access your credit reports soon. CIBIL has announced that your credit reports can be accessed by you soon. CIBIL is making preparations to put the infrastructure in place to make this possible by December 2009. The article on that development is linked to this article for your reading!
CIBIL is like ancient cruel philosophy "once a criminal, always a criminal" by their data (Correct or error)they decide consumers " Once a defaulter always a defaulter" this is extreemly unhealthy in economics and gives power to illogic money sucking cruel banks and ignores consumers dignity and economic status, Very soon CIBIL will play a devasting role in manafacturing and other large or small scale industries and individuals also,
Expect more lockouts of companies because of CIBIL, The creator(s) of CIBIL may justify, but they will be the reason for the economic down fall because of their imperfect eductation and thoughts since this is one sided and over productvity of Republic Soverign Independent INDIA will come down .
i would like to know the name & branch of bank which gave me loan & report u as write off.
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future. Thanks!
I Have applied a credit card in three different banks( SBI, ICICI & Barclays) & i have provided all the required documents(Valid documents). But all the banks have rejected my application, will it affect my credit report, should i have to check my credit report.
I wish to add that CIBIL does not tell any one what has gone wrong as per details recorded by them in the credit history, even if a request is made to them. It certainly may not be their duty but atleast they can record information in a way which makes sense to any one who reads it and tries to understand the report.
If any default is recorded, it must be specifically be mentioned under a default history list with the name of the institution, amount under default etc.
You can at the most ask for a CIBIL report by paying a fee now and keep looking at the sky for an answer.