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.
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