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What is the Full Form of CIBIL?

One of the main agencies that provide credit reports and scores in India is the Credit Information Bureau (India) Ltd (or CIBIL), which is backed by TransUnion International.

CIBIL gets financial information about individuals from banks and financial institutions. This includes their loan and credit card information, which is then compiled into a Credit Information Report (CIR) and individual credit scores.

A CIBIL credit score is a three-digit number between 300-900, with 300 being the lowest possible score and 900 is the highest. This score is said to represent a person’s “creditworthiness”. A higher CIBIL score shows that a person has displayed good credit history and responsible repayment behaviour.

A person’s CIBIL score is calculated using their detailed credit information from at least the past 6 months. An algorithm uses this data, along with various other variables to calculate the final CIBIL score.

Having a good CIBIL score (i.e., one between 700 and 900) is something that is very beneficial. This score is taken into account by banks and other lending institutions when considering loan and credit card applications. Thus, it can give these potential lenders more confidence in approving your requests for credit.

It may also result in some other benefits for you, such as:

• Lower interest rates on loans
• Higher credit amounts
• Better repayment terms, such as a longer or more flexible repayment tenure
• A quicker loan approval process
• More choice of lending institutions

The Reserve Bank of India has made it mandatory for all the credit information companies to allow users to check credit scores online and provide one free credit score report each year. This can be done easily through the CIBIL website.

How to check CIBIL Score Online

These are the steps to be followed:

• Step 1: Go to the CIBILwebsite, and click on the Know Your Score or Get your CIBIL Score option.
• Step 2: Login using your login credentials, or create a new account. To do so, you will need to use your name, contact number, and email address and create a password.
• Step 3: You will also need to attach an ID proof (passport number, PAN card, Aadhaar or Voter ID), and additional information, such as your PIN code and date of birth.
• Step 4: Once this has been completed submit the form.
• Step 5: You will then receive an OTP to your registered phone number and email-id to verify your identity.
• Step 6: Once you type in the OTP and verify, you can log in and go to the dashboard to check your CIBIL credit score.
• Step 7: You will be redirected to myscore.cibil.com, where you can log in using your details. Here, you will be able to see your credit score.

To get your credit report

• Step 8: On your dashboard click on the “Credit Report” option.
• Step 9: You will be taken to an authentication page where you need to fill out additional information related to your credit history, such as questions about your loans and credit cards. You will need to answer at least 3 out of 5 correctly to authenticate your identity with CIBIL.
• Step 10: Once authenticated, your complete credit report will be delivered to your registered email-id within 24 hours

Remember you can check your credit score only once a year for free. If you wish to receive more frequent credit reports, you can do so by paying CIBIL for this information. Currently, the rate is around ₹550 for a credit report.

How to check CIBIL Score Offline

You can also get your CIBIL credit score and report physically mailed to you by following these steps:

• Step 1: Download the Credit Score Request Form from the CIBILwebsite.
• Step 2: Print it out and fill in all the required information correctly.
• Step 3: You will also need to attach a copy of your ID proof (such as passport number, PAN card, Aadhaar or Voter ID).
• Step 4: Also attach a Demand Draft made out to “TransUnion CIBIL” This should be for ₹164 (for just a credit report) or for ₹5500 (for both credit report and credit score).
• Step 5: Once this has been completed send the above documents through email, post or courier to:
  • If sending by email, send the scanned documents to cibilinfo@transunion.com
  • If sending by post, send the documents to:

TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited)
One Indiabulls Centre,
Tower 2A, 19th Floor, Senapati Bapat Marg,
ElphinstoneRoad,
Mumbai –  400013

• Step 6: Your credit score and report will be mailed to the address you had given in the form, or to your registered email address.

Having a high CIBIL score is important, as it can help banks and lending institutions decide in your favour when you apply for loans and other credit. Since this is beneficial, here are a few ways you can improve your CIBIL score:

• Check your CIBIL score regularly so that you know exactly where you stand.
• Review your credit report regularly so that you can rectify any errors quickly.
• Pay your EMIs and credit card bills regularly and on time; avoid any missed payments and delays.
• Do not use too much of your credit card limit, and keep your credit utilization ratio (CUR) within 30%.
• Try to increase your credit limit (i.e. the total spending limit of your credit card).
• Avoid applying for multiple loans or credit cards within a short period of time.
• Unless it is necessary, do not cancel your old credit cards; older cards can reassure lenders that you have a responsible credit history.