How to Read a Cibil Report?

A report on your credit scores is simply just that – your cibil score along with other information about your full credit usage. This includes payment history, credit accounts status, and past credit activity records that your creditors and lenders report that they have. If you have requested for your cibil report online and are not sure what all the information means, this guide is your reference point for making sense of your cibil data and learning how to read the report.

It is critical to know how to check your cibil report on a regular basis and to know how to spot identity theft and fraudulent transactions. Knowing how to read your report will help you with this, and to track your repayment behaviour, search out the discrepancies so that you can get them corrected and keep your credit score in good shape.

Positive factors

  • EMI payments made regularly
  • Timely repayment of full credit card bill amounts, not just the minimum
  • Keeping up good financial records
  • Not taking too many credit types or unsecured loans
  • Working with reputed lenders
  • Use credit limits the right way
  • Don’t over-leverage good financial health
  • Maintaining your own financial records

Negative factors

  • Too many credit inquiries
  • Cheques that bounce
  • Irregular loan repayment
  • Making credit card payments after the due date or consistent part payments.
  • Too many unsecured loans or personal loans
  • Defaulting as a guarantor
  • Multiple unsecured loans applications
  • High usage of the sanctioned credit limit
  • Errors in your credit record

Your cibil report has six full sections that describe in detail your contact information, personal information, credit score, inquiry information, employment, and account information.

It is critical to read all this information and to know what it means for you. The main reason is this –an error in your credit data or wrong cibil information could result in your rejection for new loans or credit cards. Here are all of those sections in detail:

The CIBIL certified credit score

Your cibil score has the simple aim of reflecting the health and worthiness of your credit history. It is denoted by a simple three-digit number ranging from 300 to 900, where the higher the number or score is, the better it is for you! This credit score is used in evaluating your eligibility when you apply for loans and it should exceed the minimum of 750.

  • A score that is less than one or -1: this means that you don’t a credit score, to begin with, or that there is no history of borrowing from any financial institution or banks.
  • A score that falls between 300 and 600: this indicates that you are a credit risk and are unlikely to get very big credit cards or loan extensions.
  • A score that falls between 601 and 750: This gives you an intermediate credit score range and grants your loans and credits from prospective lenders. Banks and lenders will also have to assess your full and current financial health along with other risk criteria to assess your credit value. They will evaluate your income sources, employment, and loan security.
  • A score that is above 750: This indicates a very good credit score and can grant you easy access to loans and credit cards. You can even use a good credit score to negotiate lower interest rates from various lenders.

Suppose your cibil report shows any other denotation of‘NH’ or ‘NA’, then this indicates two situations. One where you don’t have the desired credit history and the other where you have no credit history at all. Credit history might even be also listed out as ‘NA’ when you don’t have enough credit activities over the last few years.

Your personal information

In this section of yourcibil report, you will find the data that is identifiable to you. This includes yourPAN Card, name, and your date of birth that you have registered with the lender or banks. Financial services acquire this information about you when you apply for their money lending products.

You can go through all of this data to ensure that it is all correct and up to date. When you notice an error or missing data, then you should go about correcting your cibil report. Your contact details might be given here as well, and can accommodate as least four different email and residential addresses.  

Information on employment

As you can already tell, this section has all of the information related to your employment. It can even show you your occupation,annual and monthly income details that you reported to lenders.  

Information on accounts

This section in your cibil reportdescribes all yourloan and credit card data. It normally spans the time frame of 36 months and includes that data concerning yourloan amount, names of the lenders, types of loans or credit you have taken, types of loan applications, last payment date, current, and outstanding balances. This is an indication of your payment behaviour and how healthy it is. All irregularitiesor regularities in payments are recorded here.

When you see this part of your cibil reportonline,you may come across a box outlined in red on certain numbers or data, it means that there is a dispute over this data.Once the dispute has been resolved, this red box will be removed.

In some instances, you will see an ‘XXX’ instead of a cibil score with a numerical value reported on certain payment details. This indicates that the lenders and banks have not yet reported on the payment information for that month or for that loan. This does not impact your cibil score but simply means that lenders have not yet updated your credit data.

Information on inquiry

In this section of your cibil report, you will find all the inquiries you have made with your lenders regarding your credit/loan applications.It could include the inquiries made about your loan size, the lender’s name, application date, and the type of loan you have applied for.

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