Importance of the CIBIL report

The Credit Information Bureau of India Limited (CIBIL) report contains complete information about an individual’s credit history. A lender generally seeks this report before deciding on a loan. If you are applying for a loan, you must be aware of these ten points and their implications in your CIBIL report.

1. Month to month record

CIBIL is a monthly report about all the loans an individual has ever taken. It displays information about your home loan, car loan, personal loan, credit card debts and all other information related to credit.

2. Why is it used?

When you apply for a loan, the lenders want to ensure that you will be able to repay the loan. They refer the report to gauge how much loan you currently have and if you can bear another one.

3. Reputation

This report is a proof of reputation of sorts due to its credibility. If you have managed and repaid all your loans in time, it will strengthen your chance of getting a loan.

4. Knowing your report

Before you apply for a loan, you must buy a copy of the report and look at it yourself first. You can accordingly gauge your credit position from the point of view of a lender.

5. How to get your CIBIL report?

Log on to the CIBIL website. You will find a form that you have to fill in order to avail the report. You will be required to pay a nominal charge.  

6. How will it help you?

Once you have the report, go through it to know the complete details of your credit history. It will help you understand in which areas you need to improve.  

7. What it shows?

The report mainly shows the payment history of your loans. It shows how much loan have you cleared and what is your current debt status.

8. Updates of the report

Lenders regularly present information to CIBIL, hence, the contents of your report change constantly. As the updates come regularly, the ratings can change every day. 

9. Can CIBIL update the report?

CIBIL can never update anything on your report by itself. They can only update your credit report when your lender sends a report to them about your loans and repayment. Also, if you notice any discrepancy in your report, you can approach CIBIL to rectify the same.

10. How to better your report?

If you want to maintain a spotless credit report, you must maintain your credits well. It’s important that you repay all loans in time and in full amount. Handle your finances with discipline to ensure that there are no hurdles when you require credit.

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