Why CIBIL ?
Having good CIBIL-score is key to get easy loans approvals.When you apply for any loans or Credit Cards , banks will pull out credit history of yours from CIBIL(Credit Information Bureau India Limited).
A Credit Score [including Credit Information Report-CIR], is your detailed credit history and full evidence of your credit worthiness. Based on your credit history, CIBIL gives you a score between 300 and 900.
The higher your score, the greater are your chances of loan approval. Before you apply for a Home Loan, Car Loan, Personal Loan or a Credit Card, check your Credit Score.
Note: PAN details are must for applying CIBIL Report.
What are the major factors that affect my Score?
There are 4 major factors that affect your Score. These are described below:
4 Behaving “Credit Hungry”: If you have made many applications for loans, or have recently been sanctioned new credit facilities, a credit institution is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt and is likely to negatively impact your Score.It is important to note that while these Scores are not viewed negatively by a credit institution, some credit institutions’ credit policy prevents them from providing loans to an applicant with Scores of “NA” or “NH” (applicants with no credit track record). Hence, you may have better chances applying for a loan elsewhere.
UNDERSTANDING YOUR CIBIL TRANSUNION SCORE
What does it mean when my Score is “NA” or “NH”?
A Score of “NA” or “NH” is not a bad thing at all. These Scores mean 1 of 3 things:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You have had no credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure
https://www.cibil.com/online/credit-score-check.do
Based on the CIBIL report , banks will decide to approve loan or reject loan.Maintaining "Good" Credit score is very important to get quick loans approvals. Credit report is a compiled information which indicates your repaying capacity and credit limit.
This was already in vogue in a country like for quite some time. It is called FICO rating.http://www.myfico.com/
The higher your score, the greater are your chances of loan approval. Before you apply for a Home Loan, Car Loan, Personal Loan or a Credit Card, check your Credit Score.
HOW TO GET YOUR CREDIT SCORE?
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Apply for CIBIL report by making Online Payment
Steps to apply for CIBIL TransUnion Score
1. Complete the CIBIL Request form.
2. Do Online -Payment ( Payment - Pay Rs.450 /- via Net Banking / Debit / Credit / Cash Card)
3. Get Unique Registration ID after successful payment and completion of Transaction.
4. Authentication (Answer 5 questions about your existing loans and Credit Cards).
You don’t need any documents, but need to answer three questions based on your credit history, such as the bank name from which you have taken the highest amount of loan and the loan amount.If you fail to answer even one question, you will be asked another question. A total of five questions will be asked, out of which you will have to answer at least three correctly for authentication to be successful.
If authentication is successful: You'll receive your credit score and credit report at the e-mail address you have provided.
If authentication is unsuccessful: Print the online payment confirmation and mail it along with your identity and address proofs (check the options given below) to the address mentioned below
If authentication is unsuccessful: Print the online payment confirmation and mail it along with your identity and address proofs (check the options given below) to the address mentioned below
Steps to Apply only for CIBIL Report
1. Complete the online CIBIL Request form
2. Do online payment of Rs. 142/- in favour of Credit Information Bureau (India).
3. Print and mail documents - Print the CIR Request Form (On-Line Payment) and mail it along with your Identity and Address proofs to any one of our below mentioned addresses.
You have to submit the following documents
Online Payment Confirmation form,Government ID ( Voter ID,PAN Card etc.,). Valid Address proof which should be on your name.
What are the major factors that affect my Score?
There are 4 major factors that affect your Score. These are described below:
1 Late payments or defaults in the recent past: Your payment history has a significant impact on your Score. Hence, if you have missed payments on any of your existing loans, over the last couple of years, your Score is likely to be negatively affected because it indicates that you are having trouble servicing your existing obligations.
2 High utilization of Credit Limits: While the balances on your loans will only reduce over time as payments are made, you must be diligent about making timely payments on your credit cards. While increased spending on your credit cards may not necessarily negatively affect your Score, an increase in the current balance on the card over time is an indication of an increased repayment burden and may
negatively impact your Score. It’s always prudent to not use too much credit.
3 Higher percentage of Credit Cards or Personal Loans (commonly known as Unsecured Loans) on your CIR: A higher concentration of home loans or auto loans (commonly known as Secured Loans) is likely to be more favourable for your Score than a large number of unsecured loans. Although unsecured loans offer easy access to finance, it’s also by far the most expensive form of credit. More the number of unsecured loans with high utilization, larger are the payments resulting from its high rate of interest.
4 Behaving “Credit Hungry”: If you have made many applications for loans, or have recently been sanctioned new credit facilities, a credit institution is likely to view your application with caution. This ‘Credit Hungry’ behaviour indicates your debt burden is likely to, or has increased and you are less capable of honouring any additional debt and is likely to negatively impact your Score.It is important to note that while these Scores are not viewed negatively by a credit institution, some credit institutions’ credit policy prevents them from providing loans to an applicant with Scores of “NA” or “NH” (applicants with no credit track record). Hence, you may have better chances applying for a loan elsewhere.
UNDERSTANDING YOUR CIBIL TRANSUNION SCORE
What does it mean when my Score is “NA” or “NH”?
A Score of “NA” or “NH” is not a bad thing at all. These Scores mean 1 of 3 things:
a) You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
b) You have had no credit activity in the last couple of years
c) You have all add-on credit cards and have no credit exposure
https://www.cibil.com/online/credit-score-check.do
My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.
ReplyDeleteMy loan was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review
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