12 Aug 2011

Know about Credit Information Report & Scores

Know about Credit Information Report & Scores.

Credit Information Report and Credit Scores from Cibil are the most common terms that you might have come across while applying for a loan or credit card from any financial institution. With increase in the number of applications for loans and credit cards to fulfill personal financial needs, banks and other financial institutions use your credit information report (CIR) to decide whether to approve or disapprove your credit application.



Basically your Credit information report (CIR) and Credit Scores denotes your loan repayment capability which is calculated by tracking your previous credit history which are stored in the Cibil Database. The Cibil refers to the Credit Information Bureau of India which keeps all the record of every person’s credit history data along with their personal information. These information are sourced from its member credit institutions like Banks, Credit Card companies, NBFC and other registered financial institutions and lenders. All the sourced information of a particular person is compiled into a single report called Credit Information Report (CIR).

The credit information report actually contains various personal details like name, address, PAN card details, previous borrowing records, payment history and even amount overdue is also tracked and stored in the report. When you apply for any credit the institution usually checks your CIR from the Cibil’s database and while referring to your credit scores determine you capability to pay back the loans. A person with good credit records has easier and faster access to loans and even on favorable terms and conditions.

Along with your Cibil CIR a Credit score is also accompanied with every report. The credit scores range from 300 for the lowest score to 900 for the best score. The more higher the score you have, the more better chances are there that you may get approved. The scores doesn’t specify any threshold cutoff criteria for the banks to approve your applications. Every bank has its different parameters to calculate as per their own resources.

Sometimes case may arise that inspite of having good credit history your application gets rejected. On those cases you are supposed to check with your CIR for any error. You can access your Credit Information Report (CIR) from Cibil. To rectify your credit information report you have to find errors and have to inform Cibil by sending an email regarding the errors and the required changes that has to be made at their email at consumer-queries@cibil.com .After sending the mail you will have to contact your lending institution to inform them about the error. Ensure that the errors have been rectified in the lender’s record and obtain a proof receipt that you have cleared your dues. Then bank or lender will validate the error and resend it to Cibil. Remember that you cannot update the changes by contacting Cibil directly, only the lending institution have the authority to confirm the changes.

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2 comments:

  1. My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.

    ReplyDelete
  2. My loan was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review

    ReplyDelete

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