Hello World

This is a blog site from CIBILConsultants. 

Our motto of starting this blog site is to share maximum knowledge about financial market, Industries and how it impacts your life….. This blog site would contain various articles from primary & secondary sources…

Hope you would like our posts… and share your comments………….

Now here goes our first Post…

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IMPORTANCE OF CIBIL REPORT AND WAYS TO CHECK IT

The loan market has changed a lot in the past 5 years. It is now extremely important for a borrower to keep tabs on the credit report issued by a widely accepted credit reporting agency like CIBIL (Credit Information Bureau (India) Ltd) to get a loan. It is now mandatory to maintain a good credit score for getting all types of borrowings from banks, whether it is a home loan, car loan, personal loan or business loan.

What is a Credit Score by CIBIL?

A CIBIL credit score can be explained as a 3 digit numeric outline of your credit history. The score is calculated by taking into account your complete borrowing details, history, repayment pattern and default instances (if any) etc. It is scaled in a range of 300 to 900 points. The higher the points i.e. close to 900, better will be the chances to get the loan from a lender. A good score is important to get a loan with ease. Lower score (close to 300) indicates a discrepancy for borrowings in the past.

Why CIBIL credit report is important?
A CIBIL credit report contains all the details pertaining to your borrowing history and its repayment discipline.It contains your past and present credit history.Banks and FI’s allow loan to a borrower on the basis of CIBIL credit report. A good credit score helps borrowers to get loans easily from banks.You can inculcate financial discipline by analyzing the credit report.

Now a days in order to increase financial discipline, govt is also promoting cibil a lot. Cibil report has become an important tool to assess your credibility. Apart from banks, these days it is extensively used by telephone companies, NBFC, HFC etc to assess your financial intention

How to analyse Credit Score?
CIBIL’s credit score ranges from 300 to 900 points. A higher score close to 900 reflects good credit history i.e. lesser defaults in payment, no over leverage and disciplined repayment. A lower score close to 300 reflects bad credit history. Banks prefer lending to borrowers with high scores and 750 to 800+ points is considered as a good score.

A lower Credit Score always lead to denial of your applications whether its a bank /your prospective employer.

What affects the Credit score?

Following are some points that can affect your credit score:-
1)Cheque bounce in the past
2)Irregularity in Loan repayment
3)Default in repayment of Credit card bill
4)Many unsecured loans such as personal loan.
5)Multiple applications for an unsecured loan can also be negative for credit score
6)Default as a guarantor

Is CIBIL Repairable???

Ans is yes…But its just like your health… As you cannot improve your health in one day ….it also take some time ….depending upon severity of financial health issues. But yes by following a disciplined  financial health regime.
Finally

Your loan account may have dues of partial amount only, but it can threat your plan to raise bigger loans. A bad credit report is not acceptable to any of the lending institution while you apply for a loan. It is a very tedious and time taking process to improve the credit score once it is distressed. CIBIL is expected to launch a real time update of credit score through an SMS alert in coming days, it would further help you to keep a check on your credit profile. It is very important to say “no” to products like credit cards and personal loans, unless you really need them.