Credit Information report and Credit score play a critical part in the loan granting process these days. Based on your credit history, a bank will decide whether to give you a loan or how much interest to charge you on the loan. We have tried to collect Frequently Asked Question(FAQ) regarding CIBIL CIR report at one place with answers. Questions such as  How can I know my CIBIL rating?I am a guarantor on the home loan of my brother. If my brother defaults on this home loan payment will it also negatively impact my credit score? Does settlement of loan affect credit score? Have a good credit score still not able to get loan? For details about CIBIL CIR report you can go through our earlier articles Understanding CIBIL CIR report, CIBIL CIR : Account and Negative Factors

 In our article Understanding CIBIL CIR report we explained CIBIL’s Credit Information report. In CIBIL CIR : Account and Negative Factors we explained in detail ‘Accounts’ section of credit report. Accounts section of your credit report contains existing and past credit facilities that you have availed from various loan providers. It shows details such as the name of the lender, type of credit facility, dates of opening and closing (if applicable) of each account, current balances, status of the accounts and your payment history.  Please go through these articles for understanding CIBIL CIR report.

Recently I applied for ICICI credit card, which was rejected due to CIBIL rating. How can I know my CIBIL rating now.

You can check your CIBIL credit score & the settlement details of your previous credit card by applying for Credit Information Report (CIR) .  To get CIBIL’s CIR Report and Score offline (downloading form and posting it) and online (submitting information on internet) are available. Both these process are explained in our article Understanding CIBIL CIR report

If I am a first time borrower, how will my credit score be calculated? Ref:DNAIndia

A generic credit bureau score is a numerical expression based on statistical analysis of a person’s credit history that will represent the creditworthiness of that individual. Advanced statistical techniques are used to determine the specific levels of risk associated with a particular borrower based on his credit history.Borrowers who have their records at the CIC for at least six months (starting from the ‘open’ date of the account) are eligible of being scored.

The CIBIL TransUnion Score 2.0 introduced a risk index score range for those individuals who have a credit history of less than 6 months. These individuals were categorized under the category of “No History- NH” in the earlier version. The score range is from 1-5, with 1 signifying “high risk” and 5 signifying “low risk”. Credit score is explained in detail in Understanding CIBIL CIR report.

How much minimum score I should have to get home loan. Which bank would be easy to get home loan if the score is less?

There is no fixed criteria defined as such as far as your minimum credit score is concerned. A score of 750+ is concerned good but it is no way a guarantee to get a home loan or any other loan. Also, your credit score is not the only deciding factor for the banks to sanction you a loan. There are other factors also like your income, the income-expense ratio, the loan to value ratio, the tenure of the loan etc.

All the banks have their own parameters and policies to sanction a loan and it is not possible for us to analyse which bank has soft policies towards a low score applicant.

I have taken a CIBIL Report by paying Rs.154 (approx) about 2 yrs back. Report did not mention the score. When i tried calling CIBIL office. they mention i should contact Bank for the score details. Is it true ? Is there any other way to know my score ?

There are 2 versions of CIBIL Credit Information Report (CIR) – one with CIBIL credit score and the other one, without it. With score, it is charged Rs. 470 as of now and without score it is Rs. 154. If you want to check your score, go for the one which costs Rs. 470. No bank would be able to provide you this report.

I tried logging my application for the CIR in CIBIL website, though I gave complete information including my PP and whatsoever necessary it appears to be not getting thru.

Quoting from Jagoinvestor CIBIL Report Online – Get your credit score in your email

The reason why we keep getting transaction failures (with payments getting deducted) is because of the way the CIBIL website handles cookies. Its always better to clear off everything in your browser before attempting to pay for your report. I found this the hard way after my payments were deducted a couple of times (1 refunded and 1 waiting for refund).

Before you move to 3rd step , you will get an IDENTIFICATION ID number , please make sure you note it down properly.

Incase the authentication step fails while applying for cibil report online, don’t worry .. all you need to do is take the print out of the payment receipt (you get it in email also) , self attested photo copies of the required documents (identity and address proof) which you had put in the form in the start , and send it to CIBIL address. You should get back your CIBIL score in next 10 days.

Documents Required 

1. Online Payment Confirmation
2. Identity Proof – PAN / Passport / Voter’s id (Identity proof should be valid and not expired)
3. Address Proof – Bank Statement / Electricity Bill / Telephone Bill / Passport / Credit Card Statement (Address proof should be not more than 3 months from the date of application and should be in your name)

Address

Consumer Relations – Disclosure Request,
Credit Information Bureau (India) Limited, Hoechst House, 6th Floor, 193,
Backbay Reclamation, Nariman Point, Mumbai 400 021.

What factors on my CIR are the most crucial in determining my credit score? Ref:DNAIndia

The credit score is calculated based on the information in your CIR. It is derived by using the details found in the “Accounts” and “Enquiries” sections on the CIR and ranges from 300 to 900 points.

The broad factors on the CIR that determine your credit score are centred around your credit utilisation, your month-on-month credit repayment record and the number of enquiries on your CIR. In addition to this, the information about the trade attributes on your CIR, with reference to the age of the lines of credit, type of credit availed, mix or balance of credit instruments, etc are also vital in determining your credit score.

In order to ensure a good credit score, it is important to make timely loan repayments and wise utilisation of credit facilities. Financial discipline coupled with prudent credit management will ensure that you enjoy all the benefits associated with having a good credit score.

Which type of loan has more weightage on credit score — a secured loan or an unsecured loan? (Ref: DNAIndia)

The type of credit availed by a borrower has an impact on his credit score. Secured loans such as home loans, auto loans, etc., weigh higher on a person’s credit score than unsecured loans such as personal loans, credit cards, etc. This means that when a borrower’s credit history has more secured loans, his/ her credit score is likely to be higher, subject to timely and regular repayments of the loan EMIs.

For the last one year, I have been paying only the minimum amount on my credit card. I intend to clear the total outstanding on my credit card soon. I want to know how my present payment behaviour impacts my credit score. Ref:DNA India 

As you have been regularly paying the minimum amount due on your credit card, the bank will report no amount overdue on this account and, therefore, your credit score will not have any negative impact. However, you also have to ensure that you regularly pay EMIs on all the loans or credit cards which you may have availed to ensure a healthy credit score.

I had a fraudulent transaction of Rs 21,500 on my credit card. Initially, I did not pay the amount as I was trying to resolve this with the credit card issuer. Later, I paid the amount when I learned that my account will get negatively reflected in Cibil. However, it appears that the credit card provider has reported me as a defaulter in Cibil. Now, I want to apply for a home loan. Can I get the loan? Ref:DNA India

The one basic element which will determine whether your credit history will reflect a default is the timing of your payment to the credit card company.

If you paid yourbill in full months after the dispute arose it is likely that your credit history will reflect that you did not pay on time. However, once you have paid the bill in full, your most recent “payment history” should reflect either “000” or “STD”. For example, if the disputed bill was raised in January 2010 and you paid the amount in May 2010, your payment history is likely to be reflected.

Though you have paid your dues in full, your credit history will only reflect that as per the date of payment. The fact that the bill was overdue for four months will continue to reflect on your credit information report (CIR) even after you have paid your bill. The lender is required by law to report your account details and the status of your payments to a credit bureau.

On the other hand, if you disputed your bill and paid it immediately, your CIR is likely to reflect no overdue payments. In this case, if the credit card provider mistakenly reported your account as overdue, it is easily rectified by following the “dispute resolution” procedure on the credit bureau’s website.

In your situation, it appears that you waited for sometime before paying your dues and hence, your late payment has been reported on your CIR. This is likely to negatively affect your home loan application as late payments are viewed negatively by lenders.

The best thing to do now is to continue paying your dues on time and re-build your “reputational collateral”. When you consistently make payments on time and your late payments move more into the past, loan providers are likely to view your application more favourably.

I am a guarantor on the home loan of my brother. If my brother defaults on this home loan payment will it also negatively impact my credit score? Ref:DNAIndia

As a guarantor on any form of loan, you are equally responsible to ensure the repayment of the loan. A guarantor pledges to repay a loan on behalf of a third party who has taken the loan. Hence, he provides a guarantee to the lender, that he will honour the obligation, in case the principal applicant is unable to do so.

If your brother (borrower) defaults on the loan repayment, this will definitely impact your (guarantor) credit score as well. Information on the default of these payments will also appear in the “Accounts” section of your Credit Information Report

The ownership indicator for this account will reflect as “Guarantor” on your CIR. Please keep in mind that your credit score will get negatively impacted if your brother defaults on the repayments of the loan.You should therefore, as a guarantor on the loan, ensure that your brother pays his loan EMIs regularly on the due date, month-on-month.

My payment history in the cibil report starts from 09-2008 to 08 -2011 (36 months). In between these 36 months I have DPD as 025 for 6 months. Will this dpd will be removed from my report in future? How it will be removed since I have already paid the full amount and there is notthing to pay and remove this dpd from my report. 

My current score is 834 but when i applied for another personal loan in dec 2011, it was rejected at 2 banks. I thought anything above 750+ score is good for banks to approve. I still don’t understand the reason for rejection. Ref: onemint

CIBIL is a safekeeper of your info and is required to maintain all the records in its existing form for a minimum period of 7 years. DPD (Days Past Due) of 025 (25 days) is a factual information and though you have fully paid your personal loan now, it will remain there in your report for the next 7 years. CIBIL does not remove these details, even if you desire so.

But, 834 is a good score and there could be some other reasons also for the banks’ rejection of your loan application. Did you check it with the banks their reason for the loan rejection? If they tell you it is due to your negative CIBIL report then I think it is due to your late payments on the 6 or more occasions out of those 36 months.

I have a few credit cards which I am no longer using. If I surrender those credit cards and close them, will it have any negative impact on my credit score and credit information report (CIR)? If there is an impact what would be the advisable step to deal with credit cards which we no longer need? Ref:DNAIndia

The Cibil CIR captures details on all the credit facilities that one has availed like home loan, auto loan, credit cards etc. Details of unused credit cards, like the date of opening and credit limit, will also reflect in the “Accounts” section of the CIR and have an impact on the credit score.Credit utilisation and trade attributes such as the age of the credit account, type of credit, mix or balance of credit instruments etc. impact your credit score. However, unused credit cards will not drastically impact your credit score if you have been regular at payment on all your other credit accounts, along with these credit cards in the past.

In fact, if you have been regularly paying your EMIs on all the credit facilities availed by you and still have unused credit cards showing on your CIR, it will provide a positive indication of your financial security. You must keep in mind some basic facts on credit cards for managing them prudently and using them to your benefit for building a good credit score:

Credit cards are unsecured form of credit. If you have been using the credit card for over a year and have been regular on payments, you have actually built a good credit history on your CIR and ultimately a good credit score. This will provide the lender with additional confidence on your repayment capability as you have shown a disciplined track record on an unsecured form of credit.

It is also advisable not to apply for too many credit cards.  If you have made applications for credit cards, this will reflect in the “Enquiry” section of your CIR and will negatively impact your credit score.

However, once you have availed a credit card, it is advisable to keep it for at least 12 months before closing it. The velocity of “opening” and “closing” a credit card account reflects on your CIR and credit score and impacts the lenders assessment of your credit management capacity. 12 months of history on the credit card, whether used or unused, is good enough for a lender to assess your financial standing and repayment capacity.

Please remember though that it is important to be careful and keep a track of your credit cards regularly. Even though the credit cards have been lying unused, you must ensure that they are kept securely and all the terms and conditions on the credit card account are adhered to. You may not like to have surprises in the form of penalties or additional charges that have been levied on the credit card accounts. It is also advisable to access and review your credit score and CIR frequently, as it will give you a detail status of all your credit accounts, which will help you manage them better.

Consider a situation where a borrower has taken a loan few years ago and has been paying the equated monthly installments (EMIs) regularly, until a few months ago. Because of certain unforeseen circumstances, he was not able to pay these installments for the past 6 to 8 months. Owing to this lapse in payment, his CIBIL credit information report (CIR) shows payment default for those months. Ref: DNA India

What recourse does the borrower have in this case? Will he be denied credit facility by all the banks? How can he improve his credit report and credit score to be eligible for accessing credit again?

Almost all credit grantors assess Cibil CIR and credit score along with other factors like the applicant’s income before deciding on credit applications. In the cited scenario, the borrower’s CIR will show the defaults for those 6 to 8 months where the borrower has defaulted on the payments. This may also negatively impact his credit score.

In a situation like this it is advisable that the borrower should not apply for any further credit facilities until his present outstanding gets cleared. Credit report and credit scores are dynamic and change according the credit behaviour of the borrower. Once the borrower has paid all the delinquent EMIs and has again started regularly paying the instalments on the loan his credit report will improve and reflect the regular payments accordingly. The credit score may also improve gradually.

I have received my CIBIL score and it is 819. However, I am still not receiving any Loans. I had applied for a loan and it was rejected.I think the score is good but I still see that for some Credit cards it is mentioned as settled or WO and that is the reason that I am not getting any loans. Anything that I can do to get this corrected. Ref: onemint

WO is “Written-Off”. Both Settled and Written-Off are considered as the negative factors in your loan approval. Contact the lender, show your report to the lender and get it rectified in your report. If the demand is genuine, then try to pay it off and get the report updated.

Quoting from Jagoinvestor Loan Settlement hurts Cibil Report & Score !

Settlement of loan will NOT clear your name in CIBIL report. In fact its a negative sign. It shows that you took loan, happily used it, ballooned it with late charges/interest by not paying on time and finally bank in frustration said – “Fine… Let’s take whatever we can get out of this guy, if we don’t get some part right now, we will not get even a penny later”. Loan settlement is a negative thing, and banks will report this incident to CIBIL and mind you, your status will be marked as “Settled” for next 7 yrs.If you have done any kind of loan settlement in past, first check your credit report and see what is your score. If its low (lower than 750) , you will seriously face getting any kind of loan in future.

My income is very wrongly quoted in the report. I had taken an education loan in 2005 from SBI and closed it in june 2010.I have the closure document as well but in the report the status does not show closed. 

Quoting from Onemint’s CIBIL Dispute Resolution Process – Rectification of Discrepancies in Credit Report

CIBIL is not the owner of customers’ credit information i.e. it just collects this information from all its members and provides all the collected information to the same members whenever they require it. The information that can be corrected through dispute are:

• Data entry errors either by the bank or CIBIL – Rectification of CIR is required
• Non-updation of data either by the bank or CIBIL – Updation of CIR is required
• Updation in your personal identification information
• Ownership mismatch of an account or Duplicate account – Rectification of CIR is required

Dispute mechanism cannot help for following:

• Non-payment of outstanding amount on your loan or credit card including penalty charges
• Non-updation of data within 45 days of making a payment
• Non-payment of outstanding amount on an “add-on” card
• Details of a closed account

It usually takes 30 days for a dispute to be resolved through CIBIL’s online dispute redressal mechanism. initiate a dispute request is by submitting a duly completed On-Line Dispute Form. A dispute request can be raised based on a CIBIL report having a unique 9 digit “Control Number”

These are frequently asked question asked about CIBIL CIR report which we came across. If you think something is missing please let us know we will add it to the list. Did you take CIBIL CIR report, What have your experiences/queries been?