Complete Guide To Read Your CIBIL Report

A CIBIL report is the summary or an extensive information about an individual’s credit history. It consists of the repayments of loans, credit cards and all the borrowings of an individual. The Credit report helps the banks and NBFCs to look at the creditworthiness of a borrower. For taking any type of loan or cards, lender first checks the CIBIL history of an individual. This report help lender to take a sound decision about lending money. A CIBIL report represents the creditworthiness of an individual, whether he will repay the borrowing amount in future or not. CIBIL keeps a record of credit reports after collecting the records from different money lenders and financial institutions.  

CIBIL report consists of a number of sections. Some of these are :

CIBIL Score
It is the three-digit number ranges between 300-900 and is generated by a mathematical algorithm using information in your credit report. The Credit Information Bureau India Ltd is popularly known as CIBIL. It is the authorized credit agency of Reserve Bank of India (RBI). A score above 750 is considered as a good CIBIL score. A higher CIBIL score suggests that the customer have good credit history and borrower will repay the monthly installments. On the other hand, lower credit score depicts that the borrower is not trustworthy, may not repay the EMIs. Currently, almost all the banks and Non-banking financing companies (NBFCs) calculate a free credit score. Online aggregators also calculate a free credit score for you.

Personal Information
This section contains the personal information of an individual like Name, Date of Birth, Voter ID, PAN number etc.

Contact Information
Up to four address can be present in this section. This address includes permanent, office and temporary addresses etc. This section also has an email Ids and the phone numbers of an individual.

Employment Information
This section contains complete detail about your employment and income of an individual. In the case of two different applications, this can be varied.

Account Information
This is a very important section of the credit report. It consists of all the details regarding borrowings like loans, credit cards etc. Details like previous lender name, date of initiation, date of last payment amount of loan, overdue etc are there in this section. If an individual encounters a red band covering, it means particular information is disputed. Based on the input of a lender, the red band may or may not remove.

Error in the CIBIL report.

1. Incorrect personal details
A small error in CIBIL reports like a spelling error in the name of an individual and address creates a major damage to your CIBIL history. Though, someone else loan status is mentioned in your report. It is very important to remove such error which may result in bringing down your CIBIL score.

2. Error in Credit Balance
You must check your credit report once a year because sometimes CIBIL shows incorrect balance. It is your responsibility to tell the CIBIL to correct your report. So that you are able to maintain healthy CIBIL score.

3. Inaccurate amount overdue
Sometimes your reports show that the amount is overdue and you are not aware of that. Then it will badly affect your credit history. You have to solve this problem as soon as possible.

Also Read: How can I Utlize Short Term Loan To Improve My Credit Score

It is suggestable to check your CIBIL report on a yearly basis and if you find any error, do fill the dispute form and try to solve the error as soon as possible.

About This Author

Bhavna Singhal Joined: August 2nd, 2018