- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Obtaining a Citibank Credit card is a simple process once the bank background verification and the CIBIL rating is processed. We, at CreditSeva value all our customers and aim at providing the best services with the earliest turnaround time.
Applying for Credit Card
We provide different kinds of credit cards for our customers based on different parameters – that may include income, existing loans and credit cards, eligibility to pay credit card bills etc. However, you are free to apply for a credit card by following the below process –
- Check out all the available credit cards on our website
- Once you decide on which credit card you would like to apply, based on your preferences, all you have to do is click on – Apply now (which is an option that is available on the details of every credit card)
- By click on that option, you will be redirected to fill out the credit card application form
- Once you fill the form and submit it, our credit card team will check for details and eligibility and give you a call on the registered mobile number
- The bank does a proper background verification of the applicant and checks their CIBIL score and trend of payments before going ahead to call the applicant
- Based on market conditions, the minimum CIBIL score for Citibank credit card keeps changing.
What is CIBIL?
Credit Information Bureau India Limited, abbreviated as CIBIL is the nation’s very first company on credit information. This Bureau is responsible for collecting and records of individuals and commercial entities (corporates and firms) concerning to payment histories – be it debit card payments, credit card payments, loan repayments or bill payments through banks. These payments related records are provided by the bank to the Credit Information Bureau. These reports are collected once every month and using this score Credit Information Report, CIR is developed, which gives out the credit scores of each.
Is CIB authorised to check financial information?
Yes, the CIB is accredited by the Reserve Bank of India and is governed by Credit Information Company (Regulation) Act, 2005. Thus it has the authority to verify the transactions and reports of applicants. This report is used by the banks and loan departments to analyse and assess the credibility of a person’s repayment.
What is CIBIL Credit Rating?
A credit rating is largely dependent on the credit history of the individual, and this information comes from the bank. Credit ratings are a rating that is computed by the CIB and is an important rating that indicates an individual’s chances of default of repayment. The credit rating is used by lenders and other banking institutions to judge an application is worth approving for a new loan or credit card.
Factors Affecting Credit Score
As stated, credit score is a very important factor while checking the eligibility of applications. Below are the factors that have a major impact on your credit score. We, at CreditSeva, consider these factors and credit score as an important factor of checking if a person is eligible for a credit card or not –
- History of payments: Previous loans or due credit card payments are always observed. The Bureau always has an eye on your pattern of payments. Late payments or defaulting the instalments on a regular basis may lessen your credit scoring – because it may indicate that you might have trouble in making payments of existing dues only, and then a question mark arises on your future cards and loans
- Over exploitation of credit limit: Citibank credit cards offer various credit limits to individuals depending on various factors. While using your credit limit to the fullest use, will not necessarily have a negative impact on your CIBIL rating but regular exploitation and over usage of your credit limit shows that you have an increased problem with payments
- Usage of multiple credit cards and having a lot of personal loans: Using a lot of credit cards and having a lot of personal loans indicate that you may be having loads of debts outside and this may not have a very positive effect on your credit rating. That is why it is always suggested to have a combination of home loans, auto loans and personal loans
- Multiple bank accounts: If you have been opening a lot of bank accounts recently – be it in the same bank or different banks, still it raises the flag for the Bureau to keep an eye on your trend of payments. So, unless necessary, do not open multiple accounts.
New Version: CIBIL Score 2.0
Based on market changes and other related enhancements, the Credit Information Bureau India Limited keeps enhancing their CIBIL requirements. The new and updated version, CIBIL score 2.0 has been commenced based on the current changes and trends in the market – majorly based on credibility data of individuals and the customer’s profiles related to banking and finances.
This new version is yet not accepted by all banks. However, almost all banks are now aiming at shifting to this updated version. The best part about the new version is that in this, the minimum scores required are lesser than the previously existing version.
For instance, if you had applied for a credit card with Citibank previously, the minimum CIBIL score would have been at least 800, but with the new version, the score cutoff is much lower now.
New Index Introduced
The new version, CIBIL score 2.0 has also introduced a new index, named the risk index range, which gives out ranges of scores and what they infer to. This index applies to all those people who have any credit history in the past six months. The same thing was categorised as NH (No History) in the older version. The new index has ranged from 1 to 5, where 1 indicates high risk and 5 indicates low risk.
Below is the table containing scores and their meanings-
Meaning (For whom does the respective score reflect)
|NH (No History) or N/A||This score reflects for all those:
· who do not have any credit history for at least the past six months
· Who have a history, but has not been reported in the past 24 months
· Who do not have a credit history and have not been reported
|1 – 5||This score reflects for individuals who have a credit history in the last six months, and that is why the risk index is returned|
|300 – 900||This score range is for those individuals who have a credit history of more than six months|
Interpretation of the scores
- For all these score ranges, higher the score, more the better – it means that if you have a higher score, then you have a lower risk of defaulting, which is a positive sign
- But, one thing to keep in mind is that, though there are changes in the Credit rating and scores, yet the process of checking the eligibility for a credit card at Citibank or loans has not been altered. The credibility and eligibility decisions remain the same, though the scores and minimum scores are altered.
How to improve your credit score?
Though you do not have a say in the decision of credibility, you can always take your steps in maintaining a good history of payments for yourself. By doing this, your profiles will always be considered positive by banks and lenders. Here are some quick tips by which you can improve your credit rating –
- Ensure to pay all your instalments and payments on time, before time will be even better. This creates a positive impact, showing that you always make payments on time and there are no chances of defaulting
- Try to keep your bank utilisation and credit limit to as low as possible. Try to avoid using your credit card as long as possible, and if you are using, pay off as soon as possible
- Try to keep a combination of credits. Like, if you require a huge loan, try to split it into 1-2 different loans. Have a combination of secured and non-secured loans to maintain a balance. It is observed that lot of unsecured loans are taken negatively
- While applying for a new loan or credit card, while you already have old ones, make sure the reason is genuine and state the same to the lender – banks
- If you have joint accounts, ensure that you are monitoring the payments of those as well because you are equally responsible for missed or delayed payments
- You can have your credit information, and it is always recommended to keep an eye on it on a regular basis.
How to read your credit information?
As stated, a CIR is a detailed information about the credits you have availed and about your credibility – be it on credit cards or any other type of loan that you have taken. You can easily download your credit information and read it and take necessary actions, based on the rating. Your CIBIL score is based on your behaviour of making due payments that reflect clearly in the “Accounts” and Enquiries” section of the CIR. It ranges between 300 to 900, and a score above 700 is considered to be good, above average.
How to purchase your CIBIL Report?
You can purchase and download your score and CIR. To be able to do so –
- Go to the website of CIBIL or Creditseva and click on ‘CIBIL Score and Report’ under Monitor your score
- It will redirect you to another page, where you will have to fill out the request form to obtain your CIBIL score
- You will then proceed to pay – the fee is Rs. 550. Once you make the payment you will have to fill out the authentication process – to be able to do so; you will have to answer few question related to your existing loans and credit cards
- Once you complete this process, the application will be successful, and you will receive the credit report in your email address.
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