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What Is CIBIL?

 

A good credit score is one of the eligibility conditions that the bank requires of you to avail a loan. Sometimes, your application for a loan may be rejected by more than one bank. This may be the case for a credit card too. Now, banks might have different reasons to do so but one of the main reasons can be a bad or poor credit history.

And since most banks have access to the same information about your credit score, you might be up for a few more rejections based on the same. Credit score for each individual is maintained by an organization called, CIBIL.

What is CIBIL?

Established as the Credit Information Bureau (INDIA) Limited or CIBIL in August 2000, CIBIL is India’s first Credit Information Company (CIC) and is the central recorder of the credit information of all the borrowers. CIBIL collects and maintains the records of all individuals regarding the loans and credit cards and provides the same information to all other financial institutions, so that the banks can be aware of your credit history before approving your loan. This information is provided to CIBIL by the member banks and finance houses.

Every time you borrow a loan or avail a credit card, your credit and repayment information is collected and submitted by the member bank to CIBIL on a monthly basis. This information is collected and recorded to create a Credit Information Report (CIR), which is in turn shared with all the other banks and financial institutions.

Your CIR is first verified by the bank so that it prevents the bank from providing a bad loan or lending money to borrowers who may not be credit worthy. The CIR is your credit score sheet which the bank verifies before approving your application.

How does it work?

To approve your loan, the credit lending organization gathers your credit score and repayment history, which may be spread over at various institutions. CIBIL collects and organizes your data and provides the same to all the banks and financial institutions, which by default are members with CIBIL. The bank uses this collective credit history to determine if or not your application should be approved. It helps the bank to function in a much faster and economical way.

Thus, a CIR is a factual report which provides an idea on your credit and payments history. Every time a lender seeks a CIR of an individual from CIBIL, a unique nine digit control number is generated which the CIBIL requires to track an individual’s report from its database. A new control number is generated every time a request is made.

Can you check your CIR?

Every individual has the right to obtain his/her respective Credit Information Report (CIR). It is through this that you can determine your credit scores and standings. CIBIL does not mark you or any individual as a defaulter, but it is just mentions a particular score on your CIR. It is entirely dependent on the respective bank on who is to be considered a defaulter. The CIR credit score or the Trans Union score ranges from 300-900.

You can access a copy of your CIR by applying over the CIBIL website. You can make the payment online as well. Refer to www.cibil.com for more details.

Documents to be required in the process:

ü  A CIR request form

ü  Identity Proof of the requestor (Voters ID/PAN card/DL/Passport)

ü  Address Proof (Electricity bills/Passport/Bank statements)

In case you have cleared off your debts but your CIR has not been updated with CIBIL, all you need to do is to:

F  Log on to the CIBIL website.

F  Purchase your CIBIL credit report.

F  Identify the error.

F  Provide the name, address, date of birth, the Control Number and the nature of error on the report on the website.

Be advised to note down the Control Number, when a credit report is generated and provide the same to the CIBIL website, so that it can track your report and make amendments.

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