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!