Credit Information Bureau (India) Limited is India’s first Credit Information Company (CIC) founded in August 2000. CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to credit institutions in order to help evaluate and approve loan applications. CIBIL was created to play a critical role in India’s financial system, helping loan providers manage their business and helping consumers secure credit quicker and on better terms.

How CIBIL Reporting Happens

CIBIL collects and maintains records of an individual‘s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to lenders in order to help evaluate and approve loan applications.

Why is Credit Score important for getting my loan sanctioned?
The CIBIL TransUnion Score plays a critical role in the loan application process. After an applicant fills out the application form and hands it over to the lender, the lender first checks the credit score and credit report of the applicant. If the credit score is low, the lender may not even consider the application further and reject it at that point. If the credit score is high, the lender will look into the application and consider other details to determine if the applicant is credit-worthy. The credit score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved. The decision to lend is solely dependent on the lender and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not.

How can one improve Credit Score?
You can improve your Credit Score by maintaining a good credit history. This will be viewed favorably by lenders and it can be done with 6 simple rules :

• Always pay your dues on time : Late payments are viewed negatively by lenders
• Keep your balances low : Always prudent to not use too much credit, control your utilization
• Maintain a healthy mix of credit : It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards). Too many unsecured loans may be viewed negatively.
• Apply for new credit in moderation : You don’t want to seem Credit Hungry; apply for new credit cautiously
• Monitor your co-signed, guaranteed and joint accounts monthly : In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments. Your joint holder’s (or the guaranteed individual) negligence could affect your ability to access credit when you need it
• Review you credit history frequently throughout the year  : Purchase your CIR from time to time to avoid unpleasant surprises in the form of a rejected loan application

What major factors affect credit score?
Major factors that affect your score

What impacts CIBIL Report

Can CIBIL delete or change records?
CIBIL cannot delete or change records reflecting your CIR on its own; we simply collect records of individuals provided to us by our members (Banks and financial institutions). There are no ‘good’ and ‘bad’ credit or defaulters lists either.

What does it mean when Score is "NA" or "NH"?
A Score of “NA” or “NH” is not a bad thing at all. These mean one of the below :
» You do not have a credit history or you do not have enough of a credit history to be scored, i.e. you are new to the credit system
» You do not have any credit activity in the last couple of years
» You have all add-on credit cards and have no credit exposure

How is the CIBIL TransUnion Score calculated ?

CIBIL Score

A numeric score, released by CIBIL, indicating an individual's creditworthiness. It is calculated based on credit data collected from member financial institutions that have extended credit to individuals in the form of loans or credit cards. Higher the score, stronger the individual's creditworthiness. CIBIL scores a.k.a. credit scores, are widely used as a key parameter when determining a borrower's eligibility for a loan or credit card