Individuals can now have access to their own
credit score and profile, which till currently is available only to banks. Credit Information Bureau (India) Ltd (Cibil), which compiles and disseminates credit histories of borrowers to banks will now make the details available to customers at Rs 450 each.
The Cibil TransUnion Score is a three-digit numeric summary (ranges from 300 to 900) of a consumer's credit history, compiled from information received from banks and other lenders, who are members of Cibil. Higher rating means better debt repayment track-record for the borrower.
The Score enables consumers to better manage their credit history, avail speedier access to credit and derive benefits associated with good credit history, like bargaining for lower interest rates. The Score is provided along with the Cibil Credit Information Report (CIR). Cibil had made the CIRs available to individuals for a fee of Rs 142, in August 2009. "The response has been huge. Many of these customers started requesting for their credit scores too. Based on that, we decided to make the Score available to them," said Arun Thukral, managing director, Cibil.
A short guide to good credit
What is Cibil Trans-Union Score (Score)?
The Score is a 3-digit numeric summary of a person's credit history. It ranges from 300 to 900 points & the closer the Score is to 900 the more favourably a loan application will be viewed.
Why access the Score?
It helps one make prudent borrowing decisions as one can see oneself as loan providers will.
How to access the Score?
Consumers can buy their Score & Cibil Credit Information report from Cibil for Rs 450. Payments can be made online or through a demand draft along with identity and address proof documents.
More details are available on the Cibil site https://www.cibil.com/d 2c
How to improve the Score?
For good credit score pay bills on time, maintain a healthy mix of credit, apply for credit in moderation, monitor joint accounts and review credit history often.
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The format of the report was revised this month and the reports would now also show whether or not the data provided by banks is accurate. It enables to read and interpret the report. The customer who wishes to get this Score card has to make the payment online through Cibil's Website or through demand draft (DD), and send the identification proofs physically to Cibil. "However, we are developing a tool for processing and verification of identities of individuals and making the Score and CIR online in a couple of weeks, so that we can complete the process online and within a few minutes," Thukral added.
These details are being made available to the member banks of Cibil in the country since 2007, eliminating subjective activity in sanctioning of loans to a great extent.
Responding to a query, Thukral said that preparing the credit score involves a lot of algorithmic calculations and a lot of analytical activity. As such the cost of the Score and CIR went up to Rs 450 from Rs 142 for CIR alone. Though Cibil has offices in other metros too, they will not be involved in the process of selling Score cards. The headquarters in Mumbai only will handle these processes.
Bank borrowers, who find any anomaly in the details of bank accounts and updates in CIR, can file their complaints under the dispute resolution head of Cibil Website - https://www.cibil.com/d2c.
These complaints are processed without any charge. CIBIL was promoted by the State Bank of India (SBI with 40 per cent stake), Housing Development Finance Corp Ltd (HDFC with 40 per cent), Dun & Bradstreet Information Services India Pvt Ltd (D&B with 10 per cent) and TransUnion International Inc (TransUnion with 10 per cent).
Courtesy: Mail Today
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