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CIBIL Score online and Loan Basics 2018

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CIBIL Score online and Loan Basics

TransUnion CIBIL Ltd. is India’s first credit information company that gives cibil score, commonly referred to as a credit bureau. We collect and maintain records of individuals and non-individuals (corporate entities) in respect of loans and a credit card. These records were provided by banks and other lenders on a monthly basis; The credit information report (CIR) and credit score will be developed using this information, allowing creditors to evaluate and approve loan applications. The credit bureau is licensed by the RBI and is governed by the 2005 Credit Information Companies (Regulation) Act. 

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What is CIBIL?

Why is my CIBIL Score important for getting my loan sanctioned?

The CIBIL score plays a key role in the loan application process. Once the applicant fills the application form and enters it to the lender, the lender will first check the CIBIL score and the applicant’s CIBIL report. If the CIBIL score is low, the lender can refuse it at any time even if the application does not apply. If the CIBIL score is higher, the lender will examine the application to ensure that the applicant is credit-worthy and will consider other details. The CIBIL score serves as the first opinion of the lender, the higher the score and the better your credit is reviewed and accepted. CBIL will not be determined only by the lender and no credit/credit card is sanctioned or not.

How can I improve my Credit Score?

By maintaining good credit history you can improve your credit score. It is compatible with creditors and can be done with 6 general rules:

  • Always pay your dues
  • Late payments are looking negative to creditors
  • Keep your reserves low
  • Always be prudent and control your use, not to use too much credit
  • Maintain a healthy combination of credit
  • It is good to have a safe healthy combination (such as home loan, auto loan) and unsafe loans (such as personal loans, credit cards). Many unsafe loans can be seen as negative.
  • Apply for new credit in control
  • You will have credit; Carefully apply for new credit
  • Monthly monitor your co-signing, guarantee and joint accounts
  • In co-signed, guaranteed or jointly held accounts, you are responsible for the lost payments. Your common holder (or guarantee) neglects your ability to take credit when you need it Review your credit history regularly throughout the year
  • Buy your CIR from time to time to avoid unpleasant surprises in the form of a rejected loan application

What major factors affect my Credit Score?

There are 4 main points that affect your score

Payment history

Delaying payments or defaulting your EMIs or dues (recent or sustainable) may cause you to pay your existing credit liabilities and adversely affect your score.

Higher consumption of credit limit The increased cost on your credit card does not affect your score negatively, as the current balance of your credit card refers to the repayment burden and adversely affects your score.

A high percentage of credit cards or personal loans (also known as unofficial debt) have a positive impact on your score because of having a balanced blend of secured loans (such as auto, home loan) and unsafe debt (such as a personal loan, credit card).

Most new accounts are recently opened If you have recently issued several loans and credit cards, lenders will see your application with a warning because this behaviour indicates that you will increase your debt burden because it affects your score negatively.

Can CIBIL delete or change my records?

CIBIL cannot delete records that reflect their own certificate. We collect the records of the people who provided us with our members (banks and financial institutions). There are no ‘good’ and ‘bad’ credit or dealers lists.

What does it mean when my Score is “NA” or “NH”?

The score of “NA” or “NH” is not a bad thing. Under one means one:

You do not have a credit history or you do not have to make a credit history, that is, you’re new to the credit system
You have no credit activity over the past few years
You have all affiliate credit cards and no credit exposure
While these creditors look negatively to the lender, some lenders’ credit policy prevents them from lending to applicants with scores of “NA” or “NH” (applications that do not have credit track record). Therefore, there are more opportunities to apply for loans in other areas.

What is the CIBIL Score 2.0?

The new, updated version of the CIBIL score 2.0 credit score. It is made up of current trends and changes in customer profiles and credit data. Banks are gradually switching to the new version and you can find the difference in the new version compared to the previous version (that is, the score may be smaller than the previous version of the 2.0). Please note, the previous version of the score available to you. However, the difference in credit score does not affect credit decisions during the loan approval process because the score of the score may be distinguished by a different score when processing the loan application.

For example, if your bank used credit cards for credit or credit cards for up to 800 or more people, it is now going to the new version if the score is cut-off.

CIBIL Score 2.0 also introduces risk index score for individuals with less than 6 months credit history. These categories are classified in the previous version of the “No History-NH” category. The scoring range is 1-5, 1 “high risk” and 5 “low risk”.

 

Score & Index Interpretation (i.e., for whom does this score reflect)
NA or NH
  • Individual has no credit history and it has not been reported to us.
  • The individual has no credit history but has only been enquired upon.
  • The individual has a credit history but none of that is reported in the 24 months prior to enquiry.
  • The individual has a credit history but it has not been reported to us in the last 24 months.
1-5
  • Individual has a credit history which is less than 6 months, hence a Risk Index is returned.
  • Higher the index, lower the risk
300-900
  • An individual with a credit history of more than 6 months (in the last 24 months).
  • Higher the score, lower the risk

https://www.cibil.com/faq/credit-score-and-loan-basics

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