Elements of a Civil report

A Cibil report or Credit Information Report (CIR) is a summary of an individual or a borrower’s financial health. It comprises all the basic and detailed information about the person’s financial behaviour. The report is released by Credit Information Bureau India Limited (Cibil) which is based on the components furnished by the lenders, credit unions, banks, and Non-Banking Financial Institutions (NBFC).  

Let us quickly browse over what makes a credit report.

Personal information: Information about your date of birth, gender, identification document proofs like Permanent Account Number (PAN) Aadhar, etc are incorporated in this section of the report. People often tend to skip reading this section, which is a big mistake. Apart from this, the section consists of employment information like annual income as provided by the member banks and financial information, contact, date of birth, etc. One must look for any mistakes and get it rectified at the earliest if there are any errors.

For example, there could be two persons with the same name and if there have been any untoward changes in the repayment chances are that financial details (a single or more) have been swapped or wrongly added. Such issues must be immediately raised and brought to the notice of the bureau.

Enquiries information: When an individual applies for a loan or credit card, the lenders, pull your Cibil report which is referred to as ‘enquiries’ and this hard pull is mentioned in this section. It is this section that impacts your rating. Additionally, it has a mention of the lenders in the past, date of their enquiry and the purpose for which the loan was taken.

Account information: This section includes details like the type of credit or credits (personal information, home, overdraft, etc.), details about the lender, account numbers, when the loan was procured, last payment date, balance amount, and a detailed monthly record of payments of last three years. It also had information about any missed payments. This section must be clear of any erroneous default payments, any loans mentioned as open that were assumed to have been closed, etc.

Credit score: The whole idea behind a Cibil report is to help the individual assess his financial credibility and it enables the prospective lenders to evaluate the borrower’s monetary stability and if he will be able to repay the loan. This is done through credit scores which is a three-digit number and ranges between 300 and 600. Scores less than 750 is perceived as problematic by the lender and they generally shy away from giving the required loan.  

Your credit report is an important feature of your financial obligations and is key to keeping an eye on the health of your credit.

Check out more on credit scores and reports at https://civilscores.com/civil-report.