Get Credit Report from CIBIL

Credit Information Bureau of India Limited (CIBIL)  now provides a report by which people can check their creditworthiness in case they are denied loan by banks because of their poor credit history. While obvious reason for poor credit history is past irregularity in repaying credit, it can also be other reasons like lack of updated information, human error, wrong identity, dispute etc. Now CIBIL provides a mechanism for people to check their own creditworthiness and take corrective measures if required.

What is Credit Information Report (CIR)?

These day people borrow from different financial entities like bank, credit card companies, housing finance companies etc. in different form like credit card, personal loan, housing loan etc. and repay the amount over period of time. All these past transaction details can tell how creditworthy a person is. A report which contains all the financial transaction details about an individual in a consolidated form across different financial institute is called Credit Information Report (CIR).

This helps a lender to track repayment record of loan seeker and quickly ascertain his loan eligibility. According to the nature of the record, a borrower is given a credit score. A poor credit score will make getting a loan difficult.

Credit Information Report from CIBIL

Credit Information Bureau of India Limited (CIBIL) was incorporated in 2000 to gather all existing consumer and commercial credit information and pool it in a one-point source, for reference. Currently banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies are members of CIBIL.

It helps protect lenders from giving credit to people with poor repayment record and establishments who are unlikely to repay what is lent. On the other hand, if a consumer has good credit score his loan eligibility will improve and loan processing will become faster. While the intent is good, at times things go wrong. Credit report can give incorrect score because of other varied reasons like lack of updated information, human error, wrong identity etc.

Now CIBIL provides a mechanism for people to check their own creditworthiness. One has to fill up an application form available at CIBIL'S website, attach a draft of Rs. 142 and mail it along with a few documents. The credit report is dispatched to his address through post. Detailed steps to be followed are provided in CIBIL site.

While the report is very helpful, current process of getting the report is very cumbersome. Online payment using credit/debit card instead of demand draft and online download of the report instead of physical dispatch will make it much more convenient for people. Hope CIBIL will provide that soon.