- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
What is CIBIL?
Credit Information Bureau India Limited, abbreviated as CIBIL is a company that was formed in 2005, with the aim of providing credit information about individuals and that is why it is known as the country’s Credit Information Company – CIC.
What does CIBIL Do?
This firm is responsible for collecting credit related information of all individuals and non-individuals (companies and firms). This information flows in from the bank and the accounts the individuals hold. The CIBIL works in sync with the Trans Union International Inc. and Dun & Bradstreet to collect and analysis this kind of information.
Segregation of Credit Information Company
The CIC is divided into two major segments: The commercial and the consumer bureau. While the consumer bureau takes charge of maintaining the credit records of individuals, the commercial bureau is responsible for maintaining all the credit records of companies, firms and institutions.
Is CIBIL Rating important for me?
Yes, CIBIL rating is important for every individual. This rating, today, is used by almost all the banks to gauge on the creditworthiness of an individual or company. The CIBIL rating becomes imperative at times when any bank or financial institution is analysing your application for either a loan or a credit card. Based on your CIBIL score, the lenders make a judgment whether you will be able to repay the loan amount or credit card bills. Thus, in short, an individual can be denied or approved a loan or credit card on the mere basis of his/ her CIBIL Score.
CIBIL rating is important for CreditSeva because it helps a great deal in reducing Non – Performing Assets (NPAs) which ultimately contributes to a positive and better credit system of the bank and India. A CIBIL report is an overall report card of an individual containing his/ her past and current credit history. A better score in the CIBIL reports helps you, as a borrower to negotiate for a good interest rate too.
Why do I need a PAN card to have my CIBIL Scorecard?
A PAN card is a document that serves as both – an ID proof, as well as an address proof and that, is why it has become a common documentation with which your identification as an individual and citizen of India is taken into consideration. These days, a PAN card is also associated with all bank and financial transactions, and it is a compulsory proof while opening any new bank account. Thus, a PAN card for CIBIL rating makes it easy for the lenders to locate your credentials and cross verify your details. You can be rest assured, that when CreditSeva or CIL uses your PAN Card information, it uses it for no other reason than to check and authenticate your present given details with your previously submitted information.
What if I do not have a PAN Card?
PAN Card is the most commonly used document, but if you do not have a PAN, you can opt to use other Government ID Proofs like Voter ID, Driving License or Passport to request for your CIBIL Rating/ score card.
How to check CIBIL Score with my PAN Card?
Instead of waiting for your bank to give you a heads up or rejection for your loan or credit card application based on your CIBIL rating, you can easily check your CIBIL score using your PAN Card. Below is the step wise guide that will help you do that –
- Log on to the official website of CIBIL
- On the top right side, you will find an option that reads – Get your Credit Score, click on it
- If you wish to get this score on a regular basis, you can choose to subscribe by choosing the most preferred subscription method
- You will be asked to enter your PAN Card number, your Email ID, Date of birth and gender
- Once you input all these details, you will have to copy the captcha code that will be displayed right beside the box
- Ensure to check the box acknowledging the terms and conditions attached to this report and its download
- Then, click on ‘Proceed to Payment.’
- If you are a repetitive customer to checking CIBIL rating, you can use your previous login details that will help you to make your payment through the same mode. If you are a first-time user, you will be directed to a secured payment gateway where you can make the payment either by net banking, debit card or credit card
- Choose to get the CIBIL score either to your postal address or get a copy on your email
As mentioned above, if you do not have a PAN card, you can use any other Government provided ID proof to get the score.
Desirable score required in India
A CIBIL score card ranges from 300 – 900 with –
- 300 being the least score and 900 being the highest score
- Lowest score 300, means that the individual has been a continuous defaulter or has been delaying payments frequently
- 900 means the individual has high credibility and has rarely defaulted payments that are due
- Any score that is between 700 and 800 is considered to be an averagely good score. People who fall under this category have good chances of getting their loan approved by banks and financial intuitions, or there are chances that their credit card can be approved by us.
The Reserve Bank of India has made it mandatory for all banks to approve/reject loans and credit cards with prior checking of CIBIL. Thus, all banks now compulsorily check the CIBIL score of the applicant. The ground rule is that a person with a poor CIBIL rating is not credit worthy and thus he/she may be rejected a loan or credit card on this parameter. Similarly, vice versa if a person has high CIBIL score, he/she is highly credible and can be approved a loan or credit card solely on this basis.
Desirable score for home loan
To apply for a home loan with Citibank, you can fill the application form from this website itself. We, at the backend, will receive the application form and will check your credit history with the help of CIBIL and their scores. There is no as such mandatory score that you have to obtain, and every bank can make few tweaks in their rating system and granting of home loans. However, every bank is required to check for a minimum of 750 as a score to consider any home loan to be approved. If you have at least 750 or higher CIBIL score, you have high chances of getting the home loan. With an even higher credit score, there is chance that Citibank may provide you with the loan plus can also get you up to 85% of financing for the property, based on the total cost.
CIBIL score required for car loan
Who would not like to have a car of their own? Citibank provides a car loan to all its customers. However, not every car loan is approved. The major decision of approval or rejection is taken based upon the CIBIL score of the applicant. For a car loan, a desirable score of CIBIL is anything above 700. Apart from the CIBIL rating, other factors that are mandatory are age (which should be at least 21 years) and a fixed monthly income.
Desirable score banks look for personal loan
You are eligible for a personal loan only when you are at least of the age of 21, and you MUST have a fixed monthly salary or income. If you meet these two requirements, you can fill out the application for a personal loan that is taken to meet personal commitments and obligations. It is one of the fastest loans that is granted post approval. However, banks do back ground verification before approving or rejecting any personal loan. The desirable score that banks look for at the applicant’s CIBIL score is a minimum of 750.
Strict policies for Personal Loans
Since personal loans are provided even without any security, banks are more stringent with the policies and background checks for this loan. Any score that is below 750 is straight away rejected. A score that meets the mark of 750 indicates that the applicant is responsible and credit worthy enough to repay the loan dues on time.
How to improve your Credit rating?
When you apply for a loan of a credit card with Citibank, you no more need to wait for the approval or rejection. You can anticipate the fate of your loan application by checking your CIBIL score yourself. Follow the above-mentioned steps to check your score using your PAN card. One quick tip you can keep in mind to improve your CIBIL rating is the 30% utilisation rule – never use more than 30% of your credit card limit. This will keep your bills in limit and will make it easier for you to repay them as well. This adds a lot of weight to your CIBIL scores, because as you pay on time, better the score is. Below are some more ways to improve your CIBIL rating before you apply for a loan with us –
- Keep your credit card free of dues:
If you cannot pay beforehand, it’s totally (that’s what credit cards are for!), but ensure that you are not exceeding the due date of the bill payment. Same follows with loans as well – it is not necessary for you to pay in advance always, but make sure you are keeping your credit card clean and loan payments on time to ensure good CIBIL rating.
- Make your appeals for errors immediately:
If you find that you have been charged wrongly or the bill due date shows up wrong on your bill or loan EMI, then raise the flag immediately. Do not just talk to the bank people orally, but ensure you have it documented. You can raise an appeal on the official website of CIBIL as well. By doing this, you are creating a proof that it was an error by the bank, and you have not defaulted in the payment of the loan or credit card.
- Use your old credit cards first:
If you have multiple credit cards, do not ignore the old cards. Use all your credit cards chance by chance to ensure that you are not blocking funds to one card, plus timely payments of all the cards will become easier too. Not using cards is not a sign of good CIBIL rating. Using the cards and then making the payments within the due date is a true sign of good creditworthiness and this creates a positive impact for you and your CIBIL score.
- Pay equal amounts of instalments every month:
Sometimes, you might just end up having a little more amount by the end of the month, and you decide to pay off your pending dues with it? Once or twice it is OK, but do not make it a habit. Try to pay equal amounts every month as this will help you a great deal in improving your track record with the CIBIL. This is because when you pay equal amounts, it shows that you can plan your finances well, and you can earn enough to pay the same amount every month.
- Take the enhancement of your credit limit, but do not push yourself to the limit:
When a bank offers you an enhancement on a credit limit, it proves that you have been a good account holder, paying off dues on time with a regular income in your bank account. Take the enhancement, but do not use your card to that limit, because repayment will then become a problem.
Above are simple five quick methods to improve your credit rating with the CIBIL. The suggestions above are easy and can be followed in everyday life as well. All you have to do is be a little careful about the dates so that you know when you are due to pay off. Timely payments go a long way in improving your scores.
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