The RBI has authorised companies which have registered under the The Credit Information Companies (Regulation) Act, 2005 to provide a credit rating or a credit score based on past performances reported by various member banks and credit institutions. Credit Information Bureau India Ltd (CIBIL) is India's premier credit information bureau. Experian and Equifax are the other large players operating in India.
Credit score is issued by 3 main credit bureaus in India. The 3 credit bureaus are CIBIL, Equifax and Experian. In India, amongst the bureaus, the CIBIL score is popular since CIBIL is the oldest bureau. However, many lenders are using Experian and Equifax for their credit decision making. It is now mandatory for all lenders to submit data to all the 3 bureaus.
Your credit score is seen as a direct indicator of your credit health. The number of loans and types of loan accounts, outstanding debt, and length of credit history also play a major role in determining your CIBIL score or Equifax score. If you maintain a good track record backed by a solid Credit score (be it CIBIL score or Equifax score or Experian score) lenders will be very comfortable lending to you.
BAD CREDIT SCORE is a really scary phrase these days – since most lenders use this to make their credit decision. Here are a few factors which cause a negative effect on your credit score.
- Delay in payments : if there are any dues in your repayment track record, this will reflect poorly on your CIBIL score. Even a single default will have a negative effect on your score.
- Don’t carry too much of debt : When it comes to calculating what you owe to lenders, your repayment history and what amount you owe to lenders are 2 major considerations. If you utilize too much of your credit, your profile is considered to be “risky”.
- Length of credit history : The length of your credit comprises of 15% of your CIBIL score. If you have been servicing debt for a longer period of time responsibly i.e. by making payments on time, it will create a positive effect on your CIBIL score.
- Having too many newly opened accounts : Every time you apply for a new credit, banks and other NBFC’s run a bureau check and this reflects as an enquiry in your credit history.
Now that you know the major factors that affect your credit score, you must use all these to maximize your credit score. You can get your credit report online to know your CIBIL score and know how your credit score build up is progress. After all, having a good credit score is what helps you get multiple financing options.
How do I get my Credit score?
There are many ways to get your credit report:
- You can upload all the required information in any of the 3 credit bureaus and get your credit score. The 3 credit bureaus are CIBIL, Experian and Equifax.
- To get your credit report yourself, you can log into any of the below bureau websites and request for the same
- You can also use the service of few professional Credit Management Company like CreditMantri and in case you have a low CIBIL score, CreditMantri gives you an analysis of your credit report.
- You can log in to CreditMantri.com and get a free credit health check.
- CreditMantri will provide an online analysis of your credit report and suggests tips to improve your credit score in the most effective way so that your loan application is approved.
A CIBIL score is a three digit number between 300 and 900 that gives potential lenders a quick idea of your loan
Credit repair involves rebuilding your credit health to a level where you become eligible for loans.
A CIBIL Score is an indicator of an individual’s credit worthiness. It impacts the individual’s ability to borrow
A credit report is a history of your credit behaviour and contains detailed information on all your loan and credit
A credit rating - also known as a credit score - is a 3 digit number between 300-900 that gives potential lenders
A bad credit score is generally one that is less than 650. A credit score is a three digit number in the range of 300-900
Yes. In fact, a credit score of 850 is very good! Most lenders look for a minimum credit score of 750 to approve loans
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Is 800 a good credit score? Yes. In fact, a credit score of 800 is very good! Only a small percentage of people reach,
Is it possible to obtain a free credit check or credit report? The answer is yes and no!
Your CIBIL Score plays an important role in getting loans and credit cards sanctioned, because it gives lenders
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First, it is important to note that there is no ‘Defaulters List’ that is maintained or circulated by CIBIL or any of the other
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In India, the best credit score to have is one that is 750 or above. The three credit rating agencies that operate in India
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It is difficult to get a loan with a credit score of 650. Most banks look for a minimum score of 750 when deciding
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A poor CIBIL score can increase your financial problems and make it difficult to access credit, whether as a loan or credit.
One common worry that runs through your mind after you have made a credit card settlement is,