CIBIL ( CREDIT INFORMATION  BUREAU OF INDIA LIMITED  ) was formed in joint effort of Govt Of India & Reserve Bank of India to improve Indian Financial Industry and also to help Indian financial institutions ( Banks & NBFCs) for building up a good portfolio.

Role of CIBIL & its participant Banks or NBFCs :

CIBIL has created account for every individuals & Business entity who has taken any Loans or Credit Facilities in form of Housing Loan, Car Loan, Personal Loan, Business Loan, Credit Card, Cash Credit Account, Overdraft Account or may be any sort of Term Loan from its Participating Banks or NBFCs. Performance track of those loans are regularly been shared to CIBIL by all those financiers.

Whenever a person/ Entity apply for new Loans or Credit Card to a Financial Institution ,they generate the CIBIL report of the said person or concern to judge the credit worthiness of the person and also to verify existing track record. Basis performance of payment track record , CIBIL also generates “Score “ which is followed by the financiers as well before lending. Scores above 750 considered to be good from lending perspective as confirmed through sources from various Banking officials.

Though it is now only used by Banks and NBFCs but In the long run there is a high probability that this weapon might be used by Post-paid telecom service provider or any other Business where there will be a lending Risk involved.

How CIBIL effect or Help individuals :

In the current social scenario we are very much accustomed in using Credit Cards on Daily Basis. Many of us is having credit cards of 3 to 4 Banks or even more. Payment cycle of those cards are also different. As a result sometimes we might skip making payment due to non receiving of statement  on time or may be sometime we simply forget.

This will definitely hamper your CIBIL Score if been continued for long time. Then next time when you apply for any Loans, there is a high probability that your application also might get rejected because of poor credit Track record.

Some Important TIPs one must do to maintain good CIBIL score:

• Make note of Payment date in the beginning of the month for all Loans, Credit Cards etc.
• Make Payment of all EMIs at least before 7 Days of due date if to be paid by cheque.
• After depositing the cheque , observe clearance from Bank account as well. Sometimes cheque can get bounced due to Technical Reason as well resulting delay payment.
• Replenish or Submit your Post Dated Cheques to the financiers ( In case of Log Term Loans Eg. Home Loans) before exhaustion of earlier sets.
• In case of any dispute with financier, try to sort out the issue within sort span of time and keep all correspondence documented properly for future record. This will help you proving your credit worthiness in future.

How to Access CIBIL or to Resolve CIBIL related Issues :

An individual can now access his own CIBIL report through Banks and NBFCs and also from CIBIL. It’s a paid service for which individual has to pay to the respective Bank ( Circular in this regard has just passed out , hence availability of this service might take some time). However this service is now only available with CIBIL.

For any sort of problem, individuals can get his Credit Information Report (CIR) from CIBIL by mailing at myreport@cibil.com or info@cibil.com

For more information, please visit Cibil.com