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Your CIBIL Report Has to Say Something About You

05-May-2017 written by : FSI-Team

Believe it or not, your CIBIL report can tell a lot about you. From your personal details to your credit history, it has a variety of information.

A CIBIL report is generally used by banks and other financial institutions when they have to sanction loans or credit cards. They assess the creditworthiness of an individual based on the report. However, the credit users themselves also use their CIBIL reports to get an understanding of their credit behavior. For instance, they can check if they have a high CIBIL score or a low CIBIL score, and in the case of the latter, they can withhold from applying for loans until they have made an improvement.

CIBIL score

One of the most important things that your CIBIL report tells about you is your CIBIL score. But what is it really?

Your CIBIL score is the score of your creditworthiness and represents how good you are with credit management and loan repayment. So, if your CIBIL score is high then it means you tend to pay your EMIs on time and don't let debt to accumulate on your credit card. Similarly, if you have a low CIBIL score, then it is quite likely that you pay your loan EMIs late, use credit cards excessively, etc.

The following are some of the other important things your CIBIL report tells about you:

  • Personal Information: Your name, address, ID information such as voter ID, PAN, driver's license etc.
  • Employment Information: Your monthly or annual income (this information may be outdated as it's filled at the time of report generation).
  • Account Information: Details of all the bank accounts you own, credit cards, loans, etc. It also contains the details of the lenders and the types of loans they have sanctioned to you. Details such as when your bank account was opened, how much debt is pending, payments made so far, nature of the loans (joint or individual), etc.
  • Inquiry Information: Details of the inquiries made by the lenders, banks or NBFCs. Whenever you apply for a loan the lender usually sends an inquiry for your CIBIL report to check your creditworthiness. This is recorded as an inquiry in your CIBIL report and can make a difference in your CIBIL score calculation.

Your CIBIL report is a strong indicator of your financial health. So, if you want to rest assured that in case you needed a loan in the future you can get it at a good interest rate easily, it's important to check your CIBIL report from time to time and take appropriate actions to help improve CIBIL score calculation.

The following are some of the things you can do to improve your credit status and give a good impression through your CIBIL report:

Monitoring CIBIL score

Your CIBIL score is one of the most important factors considered by loan lending institutions. Thus, it's important to keep an eye on it. If you notice that your score has dropped then you can take appropriate measures to make an improvement.

Managing Accounts

To ensure that your CIBIL report looks good it's important to manage your bank accounts, loans, and credit cards properly. You must try to avoid any kind of dispute between you and your lender, as it could compel them to put negative remarks in your CIBIL report. If you are unable to pay your loans on time then also it can damage your report. Thus, be sure to comply with the rules and regulations linked to your loans and credit cards. Also, be careful when you are asked to become a co-applicant for a loan with someone. This is because if they are not able to repay the loan it can affect your CIBIL report.

Checking the Accuracy of the Information

It pays to check the details mentioned in your CIBIL report. If there are any mistakes or efforts in your personal information, loan repayment history, etc. then you can have them corrected and improve your CIBIL score.

Conclusion

By now you must have a good idea why your CIBIL report is so important. However, you needn't worry. As long you pay attention to your report and take appropriate measures whenever necessary, you can ensure your report doesn't get damaged.


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