Credit Report: Advantages of CIBIL’s Credit Report And Ways To Check It

credit report

Before approving any loan, financial institutions essentially gauge four aspects, namely, an applicant’s employment status,], account details, and most importantly, CIBIL Score and credit report. CIBIL score is a three-digit number that ranges from 300-900 and summarises your credit history. 

In India, there are several credit rating bureaus that allot credit scores to individuals. The score is calculated by using one’s credit history. The higher this number, the better the chances of availing loans at improved terms. Hence, individuals must check their CIBIL report before applying for any type of credit.  

Nonetheless, the advantages related to CIBIL report check is unidirectional and benefit both consumers and lenders. Read on to know the advantages of CIBIL credit report in the financial market. 

Advantages of CIBIL credit report

For lenders, it helps to – 

  • Evaluate credit worthiness –

    When an individual applies for a loan with a financial institution, the lender immediately conducts a CIBIL report check to assess the creditworthiness of the respective borrower. The report contains a great deal of information and helps to calculate a credit score, which ultimately enables lenders to evaluate if an individual can be deemed as a safe or risky borrower.  

  • Know the borrowing history –

    CIBIL report also provides information on borrowing history, including places from where an individual has previously borrowed, i.e. credit card issuers, mortgage lenders and others.

Thus, the information regarding the past borrowing status, which is shared among other lenders, helps financial institutions to mitigate the risk of future loan defaults. 

For borrowers, it helps to – 

  • Assess financial status –

    Checking credit report before applying for loans helps you to get a clearer picture of how much you can borrow. It also helps determine whether you need to take significant measures to improve your personal credit score. 

  • Negotiate better terms –

    A good CIBIL report can allow individuals to negotiate better interest rates and personal loan terms.

Apart from these benefits, possessing a high credit score also allows individuals to avail certain perks and benefits offered by financial institutions.

For instance, NBFCs like Bajaj Finserv extend pre-approved offers to make the loan application process simple. These offers are available on various financial products, including personal loan, business loan and several others. Individuals can check their pre-approved offer by providing details like their name and contact number.  

Equipped with the knowledge of the multifaceted advantages of CIBIL credit report, willing borrowers can check CIBIL score and the report once for free, as mandated by RBI from 2017, to simplify the loan application process. 

Discussed below is the step-by-step process to check the CIBIL credit report and score. 

Step 1 – Visit the official website of CIBIL and create an account. 

Step 2 – Provide all the required personal details.

Step 3 – Complete the verification process.

Step 4 – Check credit report/score.

The easy procedure of CIBIL report check enables borrowers to access the advantages of a high credit score and utilise the same to get instant finance for all kinds of crises.

In this regard, it is important to remember that mistakes on the part of the credit bureaus or lenders can impact your credit report and lower the credit score. Hence, you must make it a habit to regularly review the credit report, and upon finding errors, opt for CIBIL report correction. An accurate credit score is one of the important things to know before taking a personal loan. Based on the type of dispute (ownership or account-related details and personal details –under individual disputes category), borrowers can avail dispute resolution process through CIBIL. Also, they can track CIBIL dispute status once the application is accepted. 

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