Steps To Generate Your Free Credit Report


 Cibil Agents & Consultabts Chennai

Credit score as an essential part of financial services has slowly caught up in India over the past few years. There are also more players in the market compared to as recently as a little over a decade ago. That said, in a shift from purely financial services, the usage of credit scores is now moving towards alternate services including telecom providers.

In fact, landlords tend to refer to credit scores prior to renting out their property, as do prospective employers to understand how reliable and trustworthy an employee will prove to be, especially when it comes to hiring for job openings involving confidentiality and trust. On a more personal front, people are requesting for credit reports even when finalising marriages!

CIBIL is a Credit Information Company which collects information of an individual’s payments pertaining to loans and credit cards, this information is submitted by Banks to CIBIL where they create Credit Information Reports CIR and credit scores or Cibil Score and in turn these score is used to approve and evaluate loan applications to individuals. Approximately 79% of the loans approved for individuals only if their CIBIL score is greater than 750. Now for a limit period of Time they are providing Free CIBIL Score with Detailed Report.

As we all know that CIBIL calculate the score on criteria of 300-900. In this range there are several score will appear on report as per individual bank creditworthiness? Some of them are
1.0-1 This credit score represent that your credit history is almost null and you have not earned the credits.
2. 350-550 this score specify that you will not be able to apply for new credit card or loan because this score card reflect your poor credit history and repayment record. 
3. 550-650 this score card represent that you are your score is quite ok and bank can trust you for new credit card or loan. 
4. 650-750 if your credit score belong to this criterion then there will be no issue in approval of new credit card and loan. 
5. 750-900 This is excellent score and if your credit score belongs to this criterion then you can apply for new credit card and loan quite easily.

What is a CIBIL score?

CIBIL is India’s oldest credit bureau, and hence enjoys the privilege of having credit scores being referred to as CIBIL scores colloquially. A score ranges between 300 and 900, and a higher score can prove to be advantageous when applying for a fresh line of credit.

In addition to CIBIL, there are three other credit bureaus, namely Equifax, Experian and CRIF High Mark operating in India as on date.

What is a free credit score?

In the USA, the Fair Credit Reporting Act (FCRA) requires each of the credit bureaus – namely Equifax, Experian and TransUnion – to provide a consumer with a free copy of the credit report, at the customer’s request, once every 12 months. These reports can be ordered simultaneously, or one from each company at a time. The Federal Trade Commission (FTC), the consumer protection agency in the United States enforces the FCRA with respect to credit information companies or bureaus.

In India however none of the credit bureaus offer free credit reports or scores currently, they are available to purchase on payment of a nominal fee. The process to obtain a score is both quick and easy, and it is recommended to check your score at regular intervals.

However, if you wish to have a free credit report, wherein India’s premier credit health management company in conjunction with the bureau offers a free credit report.

Follow below steps to get free CIBIL score

  1. Visit this secret link www.cibil.com
    2. Now fill your details like Name,DOB,PAN then submit.
    3. It will ask few more details like your Full Name, Address, Mobile number fill all details and submit.
    4. Now you will receive an email with Subject – Access myCIBIL for your CIBIL report and also look for one time password in the email.
    5. Now go to https://www.cibil.com/mycibil/and enter your email and one time password, then change password.
    6. You need to login again to see your Free Annual Credit Report

Once logged in to your Cibil account you can see:
1. Your CIBIL Score and Report.
2. Monitoring of your credit activity
3. Dashboard with all activity

Generally to get your CIBIL Score and Report they charge a one time fee of Rs 550 and for Bi-Annual Subscription with 2 Score Reports Rs 800, Quarterly Subscription with 4 Score Reports Rs 1200

Why do we need CIBIL reports?

Seeing the significance that CIBIL report has assumed in the recent past, it is only prudent for an individual to monitor and keep track of their scores. Hence the requirement for scores is paramount, and a free score would go a long way in promoting awareness and increasing usage of reports countrywide.

Take for example a case wherein Nitin applies for a home loan. Owing to a good score, his loan is approved at a competitive rate of interest in comparison to Sumit, who has a relatively lower score and hence gets a similar home loan at a higher rate. This results in substantial savings for Nitin over the tenure of the loan, a privilege that Sumit does not enjoy.

Hence, in order to remain credit healthy and financially fit, it is imperative to have a good credit score.

What should be my next step?

From the options currently available, do call for a report and check it at length together with your credit score. You can choose to avail of the services of a credit health management company if you believe that your score needs attention, and can be improved. Working with a trained credit counselor, you can rebuild your score and even enhance it given time and financial discipline.

Remember, it is the first step towards ensuring a secure financial future, so get started now.

How it Impacts you?

There are three credit bureaus present in India are CIBIL, Equifax, Experian. The CIBIL is widely used by the Banks and NBFCs. When you are filing an application for a loan to a bank or NBFC, they approach one of the credit bureaus present in India. The banks and NBFCs check the credit score and report before disbursing the loan.

Generally, they follow a minimum of 750 scores as eligibility to give the loan. It is a very good practice to check the credit report at a regular interval. If you notice something inaccuracies or differences in your credit report from the actual, you can raise a dispute claim and make it correct.

Beware or stop from below activities which can affect your CIBIL score.

  1. Too many credit cards and loans can lower your CIBIL score as it is a threat to the lender that borrower can take a large amount of credit.
  2. Never be a defaulter to a loan or credit card dues. Also, don’t delay the payment of credit card. Late payments to loan EMI or credit card dues will significantly affect the credit score.
  3. Don’t be too exposed to personal loans and credit card loans. These loans do not require any security and hence attracts more risk to the lender.
  4. Don’t increase the credit limit of your credit card unnecessarily. The bank executives are offering you to enhance the credit limit for free. Sometimes, you also agree to their proposal. Don’t agree unless you really need it. Too much credit limit can affect your credit score.

 Positive Factors of Credit Score

  1. Helps to avoid over leveraging. 
    b. Approved limit can be properly used.
    c. On time loan EMI payment.
    d. Requesting and maintaining a copy personally rather than through financial institutions.
    e. Regular bill payment of credit card. 
    f. Maintaining strong financial record.
    g. Ensuring banks and other financial institutions you are dealing with record and submit positive information to CIBIL.

Facts that Affects Credit Score Negatively

  1. Multiple applications for unsecured loan getting rejected.
    b. Too many credit report enquiries by banks and other institutions. 
    c. Too much unsecured credit such as multiple personal loans.
    d. Irregular loan repayments.
    e. Cheque bounces/dishonours.
    f. Errors in record by banks and other finance institutions.
    g. Defaulting as a guarantor

Benefits of High CIBIL Score

Boost Your CIBIL Score with easeCheck Now

  1. Easy processing of credit card and loan.
    2. User may get concession in processing fees and other charges, although it is not mandatory. 
    3. If CIBIL score is more than 700 then your credit card request must be approved quite easily. 
    4. Negotiation in interest rate possible with higher interest rate.
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We have a dedicated staff devoted to assisting you with your future financial needs.
We provide advice and information on how to best manage your current credit to maximize the impact to your qualifying ability.
 
 

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