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.