Whenever you apply for a loan or a credit card, the first thing that the lender does is to check CIBIL score by PAN Card. On the basis of CIBIL report, the customer is further processed or declined. As a customer what you must know is - what is CIBIL credit report, how is it made, what is a CIBIL score and how to check CIBIL score?

What is CIBIL and how it matters to financial credit?

Credit information bureau limited stand as CIBIL. It maintains records of all credit-related activity of individuals and companies including loans and credit card. Based on this data, CIBIL issues a credit information report or commonly referred to as a credit report and a credit score.

How can you check your CIBIL score?

To get free CIBIL score online procedure, the customer can log in to the official website of the credit agency and request for the report via email shortly after authentication. Also, apply by a post sending a filled in printed application form. Once authentication of the details done, the credit bureau will send individual credit score to the address listed in your address proof document.

How to check CIBIL score by PAN card?

When you have many questions in your mind about how to check CIBIL score by PAN card? Simply open credit score site, enter your name as per PAN card, Date of birth, gender and PAN card number. With all details, provide your contact details which include current residence address, email ID and mobile number then click on submit button.

What is a CIBIL credit report?

CIBIL report is a single unified document that contains the credit history across different lenders over a significant period of time. It is a comprehensive report that provides the details of an individual’s. The CIBIL report includes the following information:

  • Personal details like name, age, gender and address.
  • Employment details and income.
  • Information on past and current loans along with your payment record
  • Total credit limit and the amount spent monthly
  • Any credit card payment defaults.
  • And credit score.

This report provides the future lenders with the detailed information of the applier creditworthiness. Based on the credit report the lenders take the lending decision.

How your CIBIL report is generated?

Credit Information Bureau of India Limited collects and maintains the records of individual’s credit-related transactions such as loans and credit cards. These records are provided by banks and other lenders on a monthly basis to the credit bureau. Using this information a Credit Information Report and Credit Score is developed.

How is credit score calculated?

The member banks and financial institutions monthly report the details related to credit activity of the customers to the bureaus. The report comprises of new loan applications, interest rate, the credit limit on a card, the status of all loan accounts including those ‘written-off’ or ‘settled’ or ‘closed’.

How long does it take to improve a CIBIL score?

If you are planning to apply for a credit card, it is best to check your score well in advance. It can take anything from 4 to 12 months to improve the score, depending on individual situation.

How to increase your credit score?

You need to follow these steps to increase credit score:

  • Try to be as punctual and consistent with your EMI and credit card payments on time as possible.
  • Keeping a balance between secured and unsecured loans would help you enhance your image as a borrower.
  • It is highly advisable to keep your debt quotient low. Though your loan repayments would small your loan amount with time, it would be helpful to pay attention to your credit card as well.
  • Keep an eye out for your jointly held bank accounts as you are equally responsible for any skipped or late payments there as well. Negligence of your joint account holder might put you in bad light decreasing your credit score.
  • Loans of limited amount prove that you know your repayment capacity and would be able to pay-off on time.
  • A practice of reviewing your credit current and previous history would bear benefits. Make it a point that your current financial status reflects minutely on your Credit Information Report.

Published by Jack Louis