Credit score is an important component of your financial background. Even if you haven’t actively monitored or worked towards building a credit score, you already have one thanks to the dealings with various financial institutions who feed your financial data to CIBIL. CIBIL is responsible for providing credit score or CIBIL score to people.
CIBIL score and CIBIL report are arguably the single-most important component that defines whether you will be receiving any form of credit from a financial institution, be it a credit card or a loan. As such, it is imperative that you actively try to maintain a good credit score by having a good credit history.
Let’s say you have acquired a personal loan, a home loan and a credit card from three different institutions. All the three institutions will be fed to CIBIL, which will then analyse this data and come up with a credit score. Therefore, all your financial data is eventually consolidated by CIBIL so as to provide an outline on your financial background.
What is a credit score?
Your credit score will be a 3 digit number lying between 300 and 900. A high score implies good credit history while a score towards the bottom implies financial mismanagement and unpaid dues in the past and present.
When you are applying for any form of credit, the bank or the lender will approach CIBIL with a request for your CIBIL report and score. CIBIL will then forward a copy of your report to respective authorities.
How do I access my credit report?
You can access your credit report from the bank or lender with whom you have applied for credit. Alternatively, you may directly approach CIBIL and get your report in a few simple steps. You need to fill up and submit the application form, which can be downloaded online. Next, you need to pay the amount for the report through online means. On completing the online authentication process which establishes your identity, you will instantly be given access to your credit report. There’s also the option to complete the authentication process offline once you have emailed all the relevant documents.
Who are allowed access to my credit report?
All credit institutions, financial sector entities and the whole banking industry are allowed by law to access and work with CIBIL to contribute towards and access a person’s credit report. Telecom industries also have access to your CIBIL report and this is mostly used when postpaid connections are applied.
Insurance companies are also allowed access to CIBIL reports of individuals. Brokers or other credit rating agencies can also become CIBIL members and access credit information pertaining to clients. As such, it is no more only about getting loans or credit cards – your CIBIL score will likely imbue itself with all your financial dealings. Therefore, it is advisable to actively work towards building a good credit score so that you are allowed to access the full spectrum of financial services on offer.