Know Your CIBIL Score

Your credit score plays a critical role in the loan sanctioning process. It is therefore important for you to understand your Credit Score and how does it impact your credit transactions. Here are some fast facts on your Credit Score:

• Lending Institutions in India check your CIBIL TransUnion Score and your Credit Information Report (CIR) to decide on your loan application along with other factors like your income to debt ratio, professional qualifications etc.

• Your credit score is a 3 digit numeric summary of your credit history.  It is derived by using the details found in the “Accounts” and “Enquiries” sections on your Credit Information Report (CIR) and ranges from 300 to 900 points.

• The closer your Score is to 900, the more favorably your loan application will be viewed by a lender.  The Score plays a critical role in the loan approval process.

• An individual’s Credit Score provides a lender with an indication of the “probability of default” of the individual based on their credit history.  What this means in simple English is that the Score tells a lender how likely you are to pay back a loan (should the lender choose to sanction your loan) based on your past pattern of credit usage and loan repayment behavior. 

• You must always access your Credit Score along with your CIR before applying for a loan. This will give you a precise understanding of your credit standing and the likelihood of the loan approval. It will enable you to “See yourself as loan providers do!” and make prudent borrowing decisions

• It is also advisable to review your Credit Score and CIR frequently in order to manage your credit history better and ensure that you have access to credit when you require it.

• You can purchase your CIBIL TransUnion Score along with your CIBIL CIR for Rs.450 on CIBIL’s website. The payment can be made by following an online payment procedure. You will have to submit self attested identity proof and address proof documents along with the application form and online payment receipt. Further details on the CIBIL TransUnion Score for consumers are available on the CIBIL website https://www.cibil.com/d2c/accesscredit.htm

(Author Harshala Chandorkar is senior Vice President – Consumer Relations, CIBIL)