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Step by Step Guide to CIBIL Score – MakeMyMoney

By: Makemymoney

Step by Step Guide to CIBIL Score

Credit has become a part of our modern life and culture. Applying for home loan, business loan, personal loan, buying consumer goods on installments, using credit cards, etc are termed as a credit. Credit is used by both businessman and customers alike. Credit is used by individuals because it provides convenience to pay in installments.

Now, the question arises how a bank decides whether to provide or not to provide credit to a person.  Before providing loans to someone, the bank makes sure his capacity to repay the amount. For this, a bank checks his monthly, bank statement, the credit history (CIBIL report), etc. CIBIL report and score is the most important document in deciding whether to provide credit or not. CIBIL stands Credit Information Bureau of India Limited. All banks and financial institutions provide details of loans given by them to CIBIL on a monthly basis. This data consists of loan amount provided, EMI amount, loan repaid, amount outstanding, any default, any kind of settlement, etc.  Looking at this data and considering various factors, CIBIL assigns a score to individuals. This score is from 300 to 900. Higher the score, better are the chances of getting the loan approved.

One should also have a look at his CIBIL score and report, so he could see the irregularities and rectify them to improve his CIBIL report. There are many sources from where a person can get CIBIL score and report like bankbazaar or paisabazaar, etc. But I advise not to use these sites to check your CIBIL score, as you enter your details, they sell your data to different companies. The correct way to get CIBIL report is to get it from CIBIL’s own website. It’s very easy to get this report from CIBIL.

Also read- Mistakes That Affect CIBIL Score & How To Improve Them

A person can get a free copy of his CIBIL report once a year. For that, he needs to follow the below-mentioned steps:

  1. Open your browser, type www.cibil.com. you can also do it through the Google search engine.
  2. On the home page of the website, click on “  GET YOURS NOW”.
  3. On the next page, you have to select a plan based on the duration. You need to create Username and Password, please read instructions and create username and password if you are not registered.  Enter your Name, Mobile Number, Email, ensure these details are correctly entered as these are used for future communication. Now proceed to the next step.
  4. On this step, you need to enter Date Of Birth, Gender, Address With Pincode, select ID proof, enter your PAN. Data is mined using a PAN card.
  5. Now the next step is to verify your ID. For this, you will receive an email with a link. Just click on the link and your account will be created.
  6. After creating the account, you need to click on Member Login, there you have to enter your username and password. As you logged into your account, you can see your CIBIL score If you like to see the details, just click Report on the top of the page. This Report page has different parts which are mentioned below:

Personal Information – It includes your name, address, Aadhaar number, PAN number, gender, date of birth.

Contact Information – It contains your addresses if you have more than one, mobile number, landline number, email id, and other information.

Employment Information – It states the type of your occupation you are employed or business. It provides the sources of your income.

Account Information – This is the most important part of a credit report. It contains details of all your loan accounts and credits. It has the details of each account like a type of loan (personal, business or consumer), date of taking the loan, date of closing the account,  rate of interest, EMI amount, any missed EMI and so on.

Inquiry Information – It has details of loan application made by a person. It has the details like date of application, type of loan applied, amount of loan applied and any other details.

So, it is important to pay all EMIs on time, as even a single default in EMI can bring down the score rapidly, it will become difficult to procure any future loans. And it takes too much time to improve the score.

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