How to get your credit score from CIBIL: 6 steps to financial relief 

By: | Published: July 17, 2015 12:31 PM

While your paperwork may have been perfect, the one factor that could squash your dreams is a poor CIBIL score and report.

cibil scoreAfter a successful authentication, your personalised credit report and score will be emailed to you on the same day by CIBIL.(PTI)

Have you ever walked into a bank with the hope of secure a loan or a new credit card only to be told that you are not eligible for the same? While your paperwork may have been perfect, the one factor that could squash your dreams is a poor CIBIL score and report. The RBI has now made it mandatory for banks to access one’s CIBIL report to assess his creditworthiness. Along with the lenders, the onus is also on you to access your CIBIL score and report from time to time to assess whether you are maintaining a good score you and the information in the report is in order. So as to help you maintain your best credit behavior, we tell you all you need to know about it. Read on to find out about how to obtain your credit score from CIBIL as well as what goes into its constitution.

With the RBI insisting on transparency of credit lending procedures, it is mandatory for every  bank to check your CIBIL report before it even considers your application. You must  therefore  do all you can to keep it above 750 (ranges bet. 300-900). First things first, it is prudent financial behaviour to obtain your credit score from CIBIL at least once annually. Secondly, you must be aware of the factors that impact your score. Here is the lowdown on the same:

1. The process of obtaining your CIBIL score:

Getting a CIBIL credit score online is a simple process. You can logon to Credit Information Bureau of India Limited (CIBIL) website (www.CIBIL.com). As soon you log on to the CIBIL website, you will find a Know Your Score tab.  Go to the  “Click here” button for your personalized credit score from CIBIL. Here on, you need to follow the step-by-step method mentioned below:

The first step is to fill an online form. You will have to mention details like name, date of birth, address, phone number, income, identity proof and address and also loans taken by you in the past.

After you fill the online form, you will be taken to page where you will be given the options to make payment. You need to make a payment of Rs 470 using your either options such as your credit card, debit card or a net banking facility.

Once you receive a payment confirmation, you will be guided to a page where you will to have fill in authentication details.

This step involves answering a minimum of three questions of the five questions asked. These questions will be based on your credit history like credit cards held and loans that you are currently servicing or have cleared in the recent past.

After a successful authentication, your personalised credit report and score will be emailed to you on the same day by CIBIL.

In case you fail the online authentication questions do not worry, you can still obtain your CIBIL score and CIBIL report. You will have to upload the soft copy of the application for CIBIL report generated on line with the CIBIL transaction ID along with a soft copy of your ID and address proof to KYC upload on CIBIL.com ( https://www.CIBIL.com/kyc-document-upload/ ). Upon verification of the same, CIBIL you a physical copy of your CIBIL report to your address.

Now, that you know how to obtain your CIBIL score, it is time for you to learn what goes into the constitution of the same.

2. Your repayment history (35%)

This is the primary factor that impacts your credit score and accounts for 35 % of your score. Clearing  all your bills and loan commitments well within the dates stipulated will take care of this factor. Even a single default has a negative impact on your CIBIL score.

3. What you owe your lenders (30%)

There are two basic considerations when it comes to calculating what you owe your lenders. This is referred to as credit utilization. First, is the total of all your credit card limits and secondly the percentage of this limit that you are utilizing. Hence, your credit utilization ratio is calculated as balance outstanding on all your credit cards as a percentage of total credit limit on all your credit cards. If your credit utilization ratio is upwards of 30%, your profile as a customer is considered to be “risky”.

4. How long have you been servicing debt (15%)

This may come as a surprise, but the amount of time you have been using credit also has an important bearing of 15% on your CIBIL score. The longer your credit history, the better you are going to score on this factor.

5. The amount of new credit you have applied for (10%)

Every time you apply for any new credit, the lender in question runs an inquiry on your CIBIL report. If there have been too many such inquiries have been recorded by CIBIL in quick succesion, it has a negative bearing on your credit score. This factor has a 10% weightage when it comes to calculating your credit score.

6. The mix of credit (10%)

If you have been avoiding credit like the plague and have a single type of credit, you cannot have a good CIBIL score. Neither is it advisable to have only unsecured loans like credit cards or a personal loan. This factor called the mix of credit has a bearing of 10% on your CIBIL score. In order to score high on this ground, your credit portfolio must have a healthy mix of various credit types such as mortgage, personal loan, car loan, credit card etc.

Now that you know all about your CIBIL report and are also aware of how to go about obtaining it, we strongly recommend that you access them at least once annually to see that your credit information is in order. With a CIBIL score of  at least 750 you will be considered creditworthy by lenders when you are in the need of credit.

CreditVidya

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