Maintaining a good CIBIL score is important for loan approvals. A CIBIL report provides important information about your credit history by analysing historical credit utilisation and loan repayment habits. So, you have received your CIBIL report and want to understand where you stand in terms of loan eligibility, this post can help. Read on to know how to read and understand CIBIL report.
To get your credit score and report, you’ll need to contact CIBIL, India’s credit rating organisation. There will be fees associated with obtaining a credit score and report. Individuals and institutions alike must pay a maximum of Rs. 500 to get this report; the application and payment process applies to both individuals and institutions. If a bank or financial institution needs a copy of your credit report with your score in order to determine your loan eligibility, they will be required to pay for it.
We have explained how to read below.
This puts you in the top tier of creditworthiness, and when you approach a lender, they are usually very enthusiastic. This indicates that you have used your credit cards responsibly, have paid your card dues, repaid loans on time, have not accumulated large amounts of debt, and are generally a financially responsible individual. You have a modest default risk in trading terms. You will also be offered the best interest rates.
It’s possible that you’re not in the top tier. However, the loan will be granted. You’re still good even if you’ve missed/delayed payments or have a little misplaced loan portfolio. The lender may raise your interest rates by a few decimal points and need a little additional paperwork. However, if you are generally financially stable, a lender will issue you a loan or a credit card.
Have you been squandering your money? You may need to improve your financial prudence. While your credit score may indicate that getting a loan may be tough, you can attempt to improve it. Pay your credit card payments on time, repay your loans on time, maintain a healthy credit mix, and generally avoid activities that cause lenders or credit agencies to raise red lights.
You haven’t been particularly careful with your finances, have you? Because your credit history is likely to be littered with defaults and late payments, banks and financial institutions are unlikely to accept your loan or credit card application. To improve your grades, you will have to put in a lot of effort. It will take time, but it is not out of the question.
The pointers below emphasis on the importance of CIBIL report.
An overview of your credit health, loan eligibility, and credit utilization. Credit score ranges from 300 to 900. The closer the consumer is to 900, the better chances of the consumer to get his/ her loan getting approved.
With Navi, the consumer can check and verify the loans and amount of EMI’s they are eligible for with their relatively lower credit score. Navi also helps its consumers in marking out various options of loans and what sort of loans can they avail themselves of with their credit score. It can either be a Joint loan or any other kind of loan that they can be bestowed with.
A CIBIL credit report has various sections that offer detailed information about your credit history and score. The components that are incorporated in the CIBIL report are:
A consumer can check their CIBIL score and mark themselves based on their eligibility criteria for a loan. Install the Navi app on Android or iOS for easy and instant loans by submission of minimal documents.
Individual CIBIL disputes and company CIBIL disputes are the two categories of CIBIL disputes. By filling out the CIBIL Dispute form on the CIBIL website, a consumer can always file a dispute over his or her CIBIL report or score. The CIBIL Online Dispute Resolution Form, which may be found on the CIBIL website, can be used to lodge any commercial CIBIL dispute.
It would take roughly thirty days for the CIBIL dispute to be settled after you have filed it. If there is a disagreement on your credit record, your prospects of receiving credit may be severely harmed. To settle disputes about your CIBIL report, CIBIL provides authorised channels and processes. Whether the entity filing the dispute request is a firm or an individual, the process is slightly different.
CIBIL score is important for numerous reasons, some of them being as follows:
It is important for people to know that all is not lost, even if their CIBIL score is hanging under the low bar. A consumer can still ensure to establish it and get it increased by merely a few steps. One follows a combination of smart moves and in no time their CIBIL score would be up and running.
Before you go…