Your CIBIL report plays an integral role in your finances, influencing everything from your mortgage rates to your ability to secure a job or apartment. Given the weight your three-digit number carries, it’s important to know which factors are used to calculate your score—and which actions you can take to keep your credit rating healthy. When you approach a bank to fund your home purchase, you are often puzzled because a bank executive starts probing your credit score before proceeding. You may not have given it much thought, but your punctuality in paying your bills – credit card bills, equated monthly instalments (EMIs) for your automobile loan, and many other such liabilities – has a bearing on whether a bank approves or rejects your loan.
Credit information bureaus gives information about the credit profile of a person.
We all very well know how important a role, a credit report plays during our loan application process. Reading through the report is quite a daunting task as the terms mentioned there are not something we come across every day. So, here’s a detailed look at the various key terms you will come across in your CIBIL report.
The status of your loan repayment is usually categorized to gain an easy understanding of your credit history from the bank’s point of view.
What it means
Payments are made within 90 days
Non-Performing Asset (NPA)
Payments are overdue beyond 90 days
Sub Standard Account (SUB)
An account which has remained an NPA for more than a year
Special Mention Account (SMA)
A special account is created for reporting a standard account deteriorating to a sub-standard
An account which has remained SUB for more than 1 year
An account which has proven to be uncollectible and is declared as a loss
Actual Payment Amount
This is the actual value of the amount you have paid to your lender. This may be less or more than the stipulated value of your equated monthly installment.
This is the value of the amount that needs to paid back to the lender within the stipulated tenure. (Includes principal and interest)
This is the maximum amount you can withdraw against your credit card.
This is a unique number given in your credit report.
A security given to your lender by you, should you fail to repay your loan your collateral will be taken over by the lender. Collateral may be in the form of gold, stocks or shares.
It refers to the total credit you have access to with respect to your credit card and overdraft.
It is the value of the amount you are yet to repay to the lending institution.
Days Past Due
It is the number of days past the due date for repaying. It indicates the delay payments paid each month.
The value of your equated monthly installment you pay on your loan.
This section contains the details of the loan you have applied for. These are provided by the lending institution to CIBIL .
This field indicates the person/persons responsible for repaying your dues. There are four types, namely:
- Single – you are solely in charge of paying all your dues
- Joint – you and someone else together have taken the responsibility of repaying your dues
- Authorized user – when you hold an add-on credit cards, where it is understood that you are not responsible for paying your bills.
- Guarantor – when there is another person who has taken up the sole responsibility of repaying the loan, should the principal applicant fail to do so.
This indicates the highest value of your credit card bills.
This is the duration of your loan repayment period.
It is the total loan amount disbursed to you.
When the amount to be paid to the lender is disputed by the borrower, they come to a settled value which is not the same as the actual amount due. The difference between the settlement and the actual amount is written off by the lender.
Suit filed/ willful default
If there was a suit filed against you by any of your previous lenders on account of refusing to fulfill your repayment (wilful default).
Written Off amount
This indicates the total value of amount not paid by the borrower, after paying the settlement amount.
Written off and settled status
Displays details of previous settlement as well as written off values by the lenders.
Details like your past and current residential and office addresses, opening and closing dates of loans, the ownership status (single/ joint/guarantor), the liability type (loan/credit card) also form an important part of your credit report.
Points to note
The above information will certainly help you understand your CIBIL report and will allow you to take necessary measures to maintain/improve your credit score. Cibil sources all your credit information from leading banks and other financial institutions. These data keep getting updated from time to time.
Call now for free expert advice: +91 95350 61366