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5 compelling reasons to check your CIBIL Report

By Harshala Chandorkar
July 30, 2015 09:01 IST
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Your CIBIL Report and CIBIL Transunion Score provides a statement of your financial discipline to banks and financial institutions for approval of your loan or credit card application. A healthy CIBIL Report and a high CIBIL TransUnion Score indicates that you are managing your loans and credit relationships well and are financially savvy.

Here are 5 compelling reasons why you should access your CIBIL Report and CIBIL TransUnion Score:

1. Get loan ready

Along with your income to debt ratio, your credit history as reflected in your CIBIL Report is a vital parameter for the approval of your loan application. It is important to do your homework and assess your credit eligibility before applying for a loan. Along with calculating your income to debt ratio you should also be aware of your credit history and credit score.

Therefore before applying for a loan or credit card you must access your CIBIL Report and CIBIL TransUnion Score and understand its components so that you do not face any unpleasant surprises in the form of loan rejection because of low CIBIL TransUnion Score.

Based on data analysis we have observed that most banks and credit institutions are lending to people with a CIBIL TransUnion Score of 750 and above.

2. Monitor your loan and credit card accounts

Your CIBIL Report provides a comprehensive view of all your loan and credit cards. It is a useful tool to monitor performance on all your loans -- be it loans that you have availed, guaranteed or co-applied. It also provides you a snapshot of your credit cards -- the ones you own and the ones you may have provided to your spouse or children as add on credit card.

3. Ensure your CIBIL Report reflects accurate information

With access to your CIBIL Report you can ensure that the information reflected in your report is accurate and correctly reported by your banks or credit institution. If you find any discrepancies in the information on your report you can always get it corrected by approaching CIBIL through its online dispute resolution forum. CIBIL can also help you resolve any discrepancies or disputes on your credit report through the online dispute resolution process on our website.

4. Credit health check up

Just like your regular health check you must also run a financial health check up to be in control of your financial stability. Reviewing your CIBIL Report will provide you with insights into your financial health with reference to your credit exposure, like: how much debt do you hold; how have you been repaying your loan EMIs and credit card bills; how many times have you applied for a loan or credit card; do you have detrimental flags like “Settled”, “Written-Off” or “Suit Filed” against any of your loan accounts or credit cards?

This credit health check up will help you take corrective and preventive measures in time for maintaining financial hygiene and a healthy credit report.

5. Negotiate for better terms and conditions on your loan

Banks and lenders now increasingly rely on CIBIL Report and CIBIL TransUnion Score to decide if the loan should be approved. Therefore, a consumer with a good credit score is most desired by lenders. The consumer can use this powerful reputational collateral to his or her advantage. Accessing you CIBIL Report before applying for the loan may give you better negotiating power with the lending institution for availing the loan at better terms and conditions, if you have a high credit score and a healthy CIBIL Report.

Photographs: GotCredit/Creative Commons

Harshala Chandorkar is Senior Vice President -- Consumer Services and Communication, CIBIL

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Harshala Chandorkar