Some Unknown Facts About Cibil Report
Oct 10, 2017 Legal Guidance
All information about your credit history is stored and maintained with The Credit Information Bureau of India Limited (CIBIL). Your Cibil score or Cibil report determines your financial position, your worth and your credibility. It is one of the crucial factor in the home loan process and very important for borrowers to maintain it properly.
But a Cibil report is not the only a complete report that determines the borrower's credibility. There are few other aspects that your Cibil report tells about you and you don’t know anything about those. So are some hidden aspects about Cibil report which is unknown for borrowers.
We all know that maintaining a good cibil score is important to have a proper credit assessment. But the cibil report does not mention anywhere to consider it for the same purpose. Your credit history actually tells about your credit score. There is no mandate to consider credit score for home loan assessment purpose. It depends on your lender to consider credit score or not to grant the loan. Credit report only gives your financial credibility report in the past. For this, your information about your previous loan, credit card payments references is taken.
The Cibil report never gives any kind of suggestions or guidelines on what to do if your credit score is not sufficient. It does not guide with any kind of steps that you should follow to improve your credit score in order to apply for a loan. The report also does not suggests you any kind of steps that you need to take to improve your chances of availing your next loan. Whether you should keep multiple credit cards or take multiple loans, or close them, it's you who need to understand and fix your payments and dues accordingly.
Morover, the civil report does not provide any information about the total debt of an individual vis a vis total available credit or commonly known as credit utilisation ratio. It is the lender who is suppose to estimate or calculate this ratio. Thirty percent of your credit score depends on your credit utilisation ratio.
We often think that Cibil has a list of all the defaulters. But that is not true. The cibil score does not show anything like Defaulters list. It is important to know that the lenders do not have any access to any defaulter list by Cibil mentioning you as a defaulter. Cibil only has details that impact your score.
Lastly, cibil does not have any record related to the closing or settlements of your accounts. There might be several reasons for closing an account, but these details are not mentioned in the Cibil report. The report only mentions that the particular account has been settled. It depends on the executive handling your loan to produce the reason for settlement after personally discussing with you during your home loan process.
But a Cibil report is not the only a complete report that determines the borrower's credibility. There are few other aspects that your Cibil report tells about you and you don’t know anything about those. So are some hidden aspects about Cibil report which is unknown for borrowers.
We all know that maintaining a good cibil score is important to have a proper credit assessment. But the cibil report does not mention anywhere to consider it for the same purpose. Your credit history actually tells about your credit score. There is no mandate to consider credit score for home loan assessment purpose. It depends on your lender to consider credit score or not to grant the loan. Credit report only gives your financial credibility report in the past. For this, your information about your previous loan, credit card payments references is taken.
The Cibil report never gives any kind of suggestions or guidelines on what to do if your credit score is not sufficient. It does not guide with any kind of steps that you should follow to improve your credit score in order to apply for a loan. The report also does not suggests you any kind of steps that you need to take to improve your chances of availing your next loan. Whether you should keep multiple credit cards or take multiple loans, or close them, it's you who need to understand and fix your payments and dues accordingly.
Morover, the civil report does not provide any information about the total debt of an individual vis a vis total available credit or commonly known as credit utilisation ratio. It is the lender who is suppose to estimate or calculate this ratio. Thirty percent of your credit score depends on your credit utilisation ratio.
We often think that Cibil has a list of all the defaulters. But that is not true. The cibil score does not show anything like Defaulters list. It is important to know that the lenders do not have any access to any defaulter list by Cibil mentioning you as a defaulter. Cibil only has details that impact your score.
Lastly, cibil does not have any record related to the closing or settlements of your accounts. There might be several reasons for closing an account, but these details are not mentioned in the Cibil report. The report only mentions that the particular account has been settled. It depends on the executive handling your loan to produce the reason for settlement after personally discussing with you during your home loan process.
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