What is a Credit Score?
Credit Score is a numeric representation of your credit summary. It is checked by lenders to know your creditworthiness. When you apply for a loan, the first thing the lender will do is check your TransUnion CIBIL or CIBIL score, before processing your application. TransUnion CIBIL (Credit Information Bureau India Limited) provides a 3 digit number that ranges between 300 and 900. Closer the CIBIL score to 900, better it is. If your credit score is closer to 900, it is considered good by financial institutions. Therefore, if you meet the minimum credit score limit set by the lender, your application will be processed further and faster. Maintaining a good credit score helps in getting a loan approval faster and at cheaper interest rates.
What is a credit report?
A report which includes a person’s credit history with the detailed information of his/her credit accounts and loans, bankruptcies and late payments (if any) apart from their personal information is called a credit report. It is issued by licensed (CIC)s Credit Information Companies.
Benefits of a good CIBIL score
Increased credit card limit
Easy loan approval
Enhanced negotiating options
Lesser interest rates on loan
Easy credit availability
Good credit score doesn’t imply that your loan application will be accepted/approved automatically. The lender may also consider your repayment capabilities before disbursing loan amount.
How to get your credit report?
If you are planning to avail a loan, it is advisable that you check your credit score for mistakes. The credit bureau doesn’t collect the information on its own, they compile the information provided to them by various lenders, therefore the possibility of errors during the compilation of records cannot be ruled out. Errors in your credit report can delay the loan approval process or at times rejection of loan. So, it is better that you check your credit score before going for loan, to avoid any unnecessary delay.
You can buy your credit report along with the credit score from CIBIL. There are two simple ways in which you can get your credit report from Credit Information Bureau of India Limited (CIBIL). The fastest way of getting your CIBIL credit report is through online. You need to pay fees of Rs 500 to get your credit report online. However, you can download your CIBIL report from Paisabazaar.com as well at no cost. We offer free CIBIL report with monthly updates to help you keep a check on your credit score periodically.
How to check CIBIL Score Online?
Fill in the application form on www.CIBIL.com
Submit details that include name, address and contact number
Pay a nominal fee to obtain your CIBIL TransUnion score and your CIR (credit information report)
Check your CIBIL score and report via email sent to you by bureau
Also mentioned below are few key points to consider while applying for credit report online:
Fill the online credit score request form submitting your personal details, such as name, date of birth, permanent address, and identity and address proofs.
After your form submission, the website redirects you to the payment gateway. There you are requested to pay an amount of Rs 500 through your credit card, debit card or net banking to process your application further.
After this step, you will be asked for the authentication test. After passing the authentication test by answering 3-5 questions related to your loans and credit cards, you can instantly access your CIBIL score from credit report. Kindly ensure that the pop-up blocker is disabled on bureau’s website. A copy of your credit report will be mailed on your registered email ID as well. As per the rule, CIBIL is entitled to provide one free credit report once a year to every individual. Anyone, willing to download credit report from CIBIL more than once in a year need to pay the mentioned fees for each consecutive report after the first one.
If you don’t pass the authentication, you will have to upload your KYC documents along with the online payment confirmation form. Post you pass the authentication test, a hard copy of your CIBIL report will also be mailed to you within 7 business days via express delivery, speed post or courier service.
Secondly, if you want to apply for your CIBIL score offline, kindly mail your documents and a Demand Draft of INR 500 to CIBIL office address in Mumbai as mentioned below:
CIBIL Address: Tower 2A-2B, 1901-1905, 19th Floor One Indiabulls, Jupiter Mill Compound, Senapati Bapat Marg, Mumbai, Maharashtra 400013
You can download the application form from the website and mail it to the above mentioned address.
Self-attested KYC documents to be attached
Address proof: Bank statement, Electricity bill or Telephone bill (Any one)
Identity Proof: PAN card, Aadhaar Card or Voter’s ID (Any one)Or you can just send any one document of the three – your passport, driving license or Aadhaar card for the KYC.
Post verifying the documents, your CIR (Credit Information Report) will be mailed to you by CIBIL within 7 business days after receiving and verifying your KYC documents. You can also check the status of your application online.