Credit Information Bureau India Ltd - CIBIL Aims

 What is CIBIL ? What are its aims? www.cleanics.in

 CIBIL is the repository of information which is pooled in from all Banks and lending Institutions operating in India.   CIBIL  have a database size of over 17 crore  consumer records and over 65 lacs company records contributed by our over 500 Members.    

The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empoweredCIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group.   The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent This has enabled CIBIL to  tracks repayment history of  bank customers loans,  credit cards and further banking  finances. 

CIBIL’s aim is to fulfill the need of credit granting institutions for comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members. Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBIL’s services.  Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence.

Cibil Report

What is a Cibil report, credit score and how important is it? www.cleanics.in

A CIBIL credit report is a month on month record of an individual’s loan related EMI or credit card payments. Loans can include home loans, credit cards, personal loans, automobile loans and overdraft facilities. Other information included in a credit report is as follows:

• Personal information related to an individual such as name, date of birth, address and identification numbers like PAN number, Passport number, Voter’s id and Telephone number
• Account information such as the type of loan taken (home, auto, personal, overdraft, etc), the size of the loan, the current balance outstanding, overdue amount (if any), number of days a payment is overdue (if there is an overdue amount) and so on.
• Information on the number of ‘Enquiries’ made by loan providers on an individual. An “Enquiry” is created on your credit report every time the Credit Institution requests the credit bureau for your credit report.

A credit score is 3 digit numeric value, ranging between 300 and 900 assigned to a person based on their past credit history. A person with higher credit score has brighter chances of availing credit as lenders are more comfortable in processing their loan application. A lower credit score can lead to denial of loan application. Even if a bank is willing to lend to person with lower credit score, it will be at higher rate of interest. This is known as risk-based price adjustment practice of lenders.

How can i improve my Cibil score? www.cleanics.in

For more info visit www.cleanics.in or call 8143102233

How can i improve my credit or Cibil score?

You can improve your Credit Score by maintaining a good credit history. This will be viewed favorably by lenders and it can be done with 6 simple rules:

1.Always pay your dues on time
Late payments are viewed negatively by lenders

2.Keep your balances low
Always prudent to not use too much credit, control your utilization

3.Maintain a healthy mix of credit
It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards). Too many unsecured loans may be viewed negatively.

4.Apply for new credit in moderation
You don’t want to seem Credit Hungry; apply for new credit cautiously

5.Monitor your co-signed, guaranteed and joint accounts monthly
In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments. Your joint holder’s (or the guaranteed individual) negligence could affect your ability to access credit when you need it

6.Review you credit history frequently throughout the year
Purchase your CIR from time to time to avoid unpleasant surprises in the form of a rejected loan application

What is Credit Score & Credit information report? www.cleanics.in
A Credit Score or the CIBIL TransUnion Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIR. A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits

For more Info Visit www.cleanics.in or call 8143102233