Will Getting A Free Credit Report From Bureaus Help Indians?

13-Dec-2016 written by : FSI-Team

“Knowledge is Light” In the absence of knowledge you are practically living in the dark. You are not sure of what to do, which path to take and where to go. But with knowledge comes the guiding light that brings clarity and enables you to take decisions that are right for you. In short, you cannot be misguided because you have the knowledge on how to handle things.

This expression is so true in the context of credit scores. For a vast number of citizenry, credit score still remains an untrodden turf. Since in the modern world, lenders rely heavily on credit scores when examining debt related applications, it makes them a subject of high priority.

Often borrowers are ill-advised on the prospects of getting a loan and the rate at which they can get it. Most borrowers are also under the impression that a credit report is a tool for lenders to harass them in a diplomatic way. Nothing can be farther from truth. A high credit score and a praiseworthy credit past are more beneficial to borrowers than lenders.

  • With credit scores to boast about, a person gains easy access to loans, if other aspects are also satisfactory. So whether you want a HDFC home loan or ICICI Bank car loan, it becomes relatively easier for you to get a loan than for those who are struggling with a low CIBIL score.
  • For someone in the elite credit score club, interest can be negotiated to a lower rate. Banks and other credit institutions will be vying for your business and the applicant can take advantage of their fierce competition.

Thus, credit scores help not a just lender peek into a borrower’s debt related past but also help borrowers take advantage of their superior scores by gaining the power to negotiate favourable terms.

How do I learn about my score?

Getting a copy of your CIBIL score and report can come as an answer to all those questions bubbling in your mind, when your loan application is unexpectedly rejected. The information given in the report can help:

- Cite areas that need to be worked upon to improve the score

- Point out inaccuracies and errors in the details mentioned in the report

- Spot unauthorised inquiries and unidentified accounts that can help nab identity robbers.

When you haven’t seen your report even once, you don’t know the information recorded thereof. It is possible that your report is riddled with mistakes that are affecting your score miserably. It is important to take note of them and have them corrected in time so that your report and score reflect a true picture of your creditworthiness.

The easiest way to learn about your score is to self review your score. You can order a copy of it through CIBIL’s website upon a payment of Rs. 550/- for one copy. They also have subscription services wherein you can opt for a bi-annual or quarterly subscription for a discount and subsequently get two to four copies of your credit report in a year.

Can I get a free credit report?

Credit scoring is a western concept and there a free copy once a year is provided by each of the four credit bureaus. However, till date that facility is not available in India.

Till now, has shouldered the responsibility of providing its readers with a free copy of their credit report. This has helped thousands of our readers and has enabled them to master their scores. Thereby, seeking funds has become an easier and hassle free task for them.

RBI has, in recent times, taken cognizance of the importance of credit scores in the lending business and has mandated bureaus to provide one free copy every year to individuals. This facility is due to start from January 2017. So if you were looking to review your credit report, either you could order a free copy today or hold on until January.

It has been noted that a free copy will incite applicants to access their reports and therefore use the information given in it to seek funds. Perhaps, with better knowledge about their scores people will not be pushed to knock at the doors of lenders from the unorganised sector, who have looted people in the past due to absence of funding from organised lenders.

Words of Wisdom

Know how on credit scores brings transparency in transactions. With crystalline transactions comes efficiency which results in growth. Even for a simple credit instrument such as a credit card, one needs a good credit background. There is no doubt that if each and every person of our great nation comprehends the simple science behind credit scoring models and how they can be used to one’s advantage, there will be a surge in demand for credit. As a result, there will be more borrowings, more investments and owing to transparency in business there will be a smooth cash flow in the economy. This will trickle down to more employment and economic growth.

Thus a free copy of credit report will not just help one individual but the nation at large. It is the demand of digital India, a crisp and clear window of lending.



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