Soon after deciding to avail a loan or credit card, the first and foremost thing that grabs the attention of many is none other than the three-digit numeric summary. Now you must be wondering, what this numeric summary is all about? Isn’t it? Well, let’s just give you a sneak peek of the same in the article below:
Talking about your numeric summary, it is nothing but a numeric representation of an individual’s credit history and repayment record. The moment you apply for any sort of credit facility, the first and foremost thing that most of the lenders do is to check your score so as to know whether you are eligible for a loan/credit card or not. And, on the basis of the same, your application is further processed. Your score is basically written on a cibil report so that one can easily know about it just by looking at the same.
Now that we have talked about this report, let’s just know more about the same below:
What is a Cibil Report?
It is a single unified document that contains the credit history and repayment record of the individuals/non-individuals across different lenders over a significant period of time. This comprehensive report provides the complete borrowing history of not only individuals but corporate entities as well. By looking at the same, it would be easy for the lenders to decide the loan/credit card eligibility of the individuals.
This document contains each and every detail, hence which helps the borrowers to take a final decision. Basically, the report includes the following information:
- Personal details of an applicant (name, age, gender and address)
- Employment details and earnings
- Number of hard enquiries made by potential lenders on receipt of the loan/credit card application
- Record of previous and current loans along with the payment record
- Any defaults on a loan
- The details of settled loans, if any
- Total credit limit and the amount spent monthly (Credit Utilisation Ratio)
- Any credit card payment defaults
- Credit score
This document shows the applicant’s creditworthiness which is based on his previous and current credit behaviour. Soon after checking the same, the lenders then take a final lending decision.
Now here comes the question, i.e. how this report is generated with all the data being available. Take a look at the answer of the same below:
The Credit Information Bureau of India (CIBIL), which is India’s first Credit Information Company basically collects and maintains the records of the individuals and non-individuals and their credit-related transactions based on loans/credit cards. Now, this data is being provided by the banks/ other lenders on a monthly basis to the Credit Bureaus. With the help of using this information, the Credit Information Report (CIR) gets generated. And, with the help of your cibil score login, you can anytime have an easy access to your report and check the same whenever required.
So, hope this article was worth reading for you!