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Your CIBIL™ credit score is a 3-digit number that indicates your creditworthiness to lenders so that they can decide on your credit application. It helps them to make an informed decision on lending. It ranges between 300-900, while 750 is considered a healthy CIBIL™ score to get the best credit and loans.

Your Credit Information Report, CIR, is a report of your credit status. It includes vast information on your credit standing and the factors that determine your credit score. CIR has information on your credit activity and current loan or credit standing in terms of your payment history and the status of your credit accounts.

How is your credit score and credit information report generated?

Your credit score and credit information report are generated by credit bureaus. There are four authorized credit bureaus in India; CIBIL™, Equifax, CRIF High Mark and Experian. An individual is entitled to get one free credit report in a year. You may choose any one of the 4 credit bureaus to request a credit report along with your credit score.

In order to generate a credit report about each person's creditworthiness, credit bureaus collect as much financial information as possible about each person individually. Every month, banks and financial institutions provide them with this information. Each report is assigned a Credit Score, which is a 3-digit numerical designation.

What information is included in the credit information report?

The CIR is a record of your loan-related EMI payments and/or credit card payments on a monthly basis. It does not provide information about your investments or savings. Home loans, personal loans, car loans, credit cards and overdraft facilities are all examples of credit that are included in your CIR. It will also include your basic identification information like name and contact information.

The information contained in your CIR is categorized into the following: 

  • Personal Information: This section contains details from member banks and credit institutions such as your name, date of birth, address, and identification numbers such as your PAN, passport number, voters number, and telephone number.
  • Account information: This section contains details such as the type of credit used (loans, credit cards, etc.), the loan/ credit card amount, the accrued current balance, the overdue amount, the number of days the payment is past due, and the status (written off/settled/closed).
  • The number of ‘Hard Enquiries’: This is the total number of ‘Hard Enquiries' made on your credit profile by banks. When you apply for a loan or credit, a lender seeks CIBIL™ for your CIR and an "Enquiry" is generated on your CIR.
  • Payment History: Payment history is the most crucial piece of knowledge. Account statuses (paid/past due) are kept for two years, and missed payments are kept for seven years. There are even details about how much was due and how late the payment was.

Additional Reading: How To Maintain A Good Credit History

What is the difference between your credit score and credit report?

The credit score is a three-digit numerical number that determines your creditworthiness. The credit report, on the other hand, contains detailed information about your credit transactions and history. It's important to remember that both play a significant role in the acceptance of your credit application, and lenders use both to determine your creditworthiness.

Who uses your credit report?

The RBI has regulations in place to check who can seek your Credit Information. Generally, any lender whom you have approached for credit is eligible to check your credit information. This list generally includes:

  • Lenders and prospective lenders: The most apparent businesses will be banks, financial institutions, lending firms, auto dealers, and credit card providers from which you are receiving credit. Both of them uses details from the credit report to decide how much credit to lend to you and what interest rate to charge.
  • Banks: Before you open a checking or savings account, the bank will most likely run a credit check to assess the likelihood of over-drafting or closing an account.
  • Insurance Providers: Credit reports are used by insurance companies to determine premium rates.
  • Credit checks may be used to assess eligibility for government benefits. 
  • Debt collectors use credit records to decide if you can settle the debt you owe.
  • Employers or Prospective Employers: To access a credit report, companies must obtain written consent from the employee or candidate. The employer is expected to include an adverse action warning if you are refused a position because of a credit score. This explains why you were rejected, as well as the credit report and which bureau it was obtained from.

How can I achieve a healthy credit score?

Your credit score is dependent on your credit records and previous payments, but it also influences your possible credit availability. What you do now will help you create a bigger and better credit presence in the future. Here are a few quick tips to help you improve your score:

  • Close those long-term loans or credit cards that are causing your poor credit. 
  • Check your credit report on a regular basis
  • Do not get behind on payments
  • Limit your credit utilisation
  • Avoid submitting several loan/credit card applications in a limited period of time
  • Request an increase in your credit card limit

CIBIL™ Credit Score And Credit Information Report FAQs

1. Are the credit score and credit report the same?

No, they are different. Your Credit Information Report, CIR, is a report of your credit status. Your Credit Score is a 3-digit number that indicates your creditworthiness to lenders so that they can decide on your credit application.

2. Does checking your credit report lower your credit score?

Multiple checks on your credit report by lenders may have an impact on your credit score. But you can check your credit score multiple times and it will not have any impact on your credit score.

3. Can I get my credit score from all four credit bureaus?

An individual is entitled to get one free credit report in a year. You may choose any one of the four credit bureaus to request a credit report along with your credit score. If you want to get the report from more than one bureau, you can get it by paying the relevant fees.

4. What is a good credit score?

A credit score is rated between 300 to 900. A credit score above 750 is considered good while anything above 800 will be considered best.

5. Where can I check my credit score and credit report?

Equifax, CIBIL™, High Mark, and Experian are the four credit bureaus in India that measure and offer credit ratings and credit reports. Your credit report can be obtained either from the credit bureau's website or via CreditMantri. The protocol is straightforward; you just input your telephone phone, PAN number, and a few other information such as your name and email address. After that, the credit bureau will generate your credit score as well as a comprehensive credit report for your analysis.

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