Importance of CIBIL report - credit score

When you apply for a loan - the banker asks you about your credit Score and inform you first they will check with CIBIL. Same happens when you apply for a credit card - the credit card issuer will tell you the same story. This article is related the credit score, credit information report and the the details of CIBIL report and credit score.

You want to go for a loan - The banker will ask you about your credit Score and inform you first they will check with CIBIL. You apply for a credit card - the credit card issuer will inform you the same story the credit score and the CIBIL. Sometimes it irritates you, question arises to your mind - what is this Credit Information Report all about and who is this all-known CIBIL. Why I need to be passed through this CIBIL - Is that watching all my previous financial transactions related with my credit card and loan?

The true answer is - "YES". There is someone who is constantly watching all your loan and credit card transaction. This someone is none but CIBIL. CIBIL stands for Credit Information Bureau of India Limited. CIBIL is keeping the track history of all the credit card holders and loan takers regularly.

What is credit score?

The Credit Score is a number which is derived from the Credit Information Report(CIR). This score is to determine your credit worthiness. This is the reflection of your past payment history of your loan and credit card.

CIBIL receives the your payment history from the Banks, Financial Institutions, Non-Banking Financial Companies, Housing Finance Companies and Credit Card Companies and prepares the CIR based on the various factors like Payment History, Outstanding amount, Duration of Credit , Number and types of credit accounts, Utilization etc.

How CIBIL was formed?
Previously when you apply for a loan, then the lender had to search all your track record with different institutions for the previous payment history. This was taking much time in order to process the credit application. So there was an requirement for a centralized information center which will keep track all informations related with a borrower's payment history. This results in CIBIL. This is the high-end technology driven private sector institution which helps the Lenders to get the quick decision for the potential customers.

How CIBIL gets all the informations?

CIBIL has a relationship with all the banks and the financial Institutions in sharing the customer payment history. They compile all the informations available from the Lenders.

This indicates that every time you pay late on your loan EMIs or your cheque bounces on loans, all these is getting recorded in CIBIL. This will create you a problem in future for further loan.

What is the advantages of good credit score?

If you are having a good credit score your application will be processed quickly. You can get a lower rate of interest and you may need to furnish fewer documents also.

How can I improve my credit score?

You should always pay your payment on time. To ensure this, make sure that your earnings are sufficient enough to pay the loan. If you take a loan and that is beyond your limit and you default every time then your credit score will be very poor. And this will create future problem to get any other loan. Be prudent whenever you take any loan.

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Author: Mahalakshmi T30 Apr 2011 Member Level: Gold   Points : 1

To get the CIBIL credit score or credit information report (CIR) you have to submit a request form, along with your identity proof such as valid PAN Card, Passport or Voter's ID, address proof can be bank statement, electricity bill, telephone bill, passport, credit card statement, should not be more than 3 months old from the date of application. The fees is Rs.450/- for CIBIL TransUnion Score + CIR and Rs 142/- for CIR, can be paid online or by DD. See website of cibil for more details.

Guest Author: sudhir lal30 May 2013

I was going through the same problem few months back , then I consulted credit sudhaar, they helped me in paying my debt and also counselled me in taking decisions to improve my credit score. I would suggest you to consult them once. You can contact them on 022-67886788 or can visit their websites at

Guest Author: Hari Prasad13 Jul 2013

I had no idea my credit was bad. The guys at Credit Sudhaar analysed my report. The process took some time but my credit was restored, enhanced and protected. I have no reason for complaints.

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