How to Check Your Rank in CIBIL?

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With the launch of CIBIL Score 2.0, banks will now be able to gauge the creditworthiness and risk of new borrowers. This system provides ranks to customers who have a credit history of less than six months. The risk index is from 1 to 5, with 1 being the highest on the index and 5 being the lowest.

Banks in India can check this database to assess and evaluate a potential borrower and whether the loan should be approved or not.

Here’s how you know where you rank on the new scoring version.

If your rank is ‘NA’ or ‘NH’:

You have no credit history, which means CIBIL has no database dedicated to your financial records.
Your credit report only consists of enquiries. This means, potential lenders have checked your report but haven’t approved any loan.
No lender or financial institution has reported any information to CIBIL in the last 24 months.

If your rank is between 1 and 5:

Your credit history is relatively new and hasn’t been in the system for more than 6 months.

If your score is closer to one, you’re viewed as a risky borrower.
If your score is closer to 5, you’re viewed as a responsible borrower.

To get approved for loans, you will have to maintain a good credit history and a clean financial record. Even though your history is less than six months old, there are certain steps you can take to improve your score and thus, your creditworthiness.

How Often are CIBIL Reports Updated?

Lenders will submit all your financial information every 30 to 45 days to CIBIL. This will include your payments, your outstanding balances, delayed payments, and more. If you have borrowed finances from a smaller lender, they might share your information on a quarterly basis.

Once CIBIL receives this data, they will process it so it reflects on your credit report. Now, if you choose to buy your CIBIL report within 45 days of paying your last dues, you may not receive the updated version. Your report may show incorrect current balances or amounts due.

What you should do is look for the ‘Date Reported’ section in your report. If the information submitted by your lender is older than two months, and the payment details are still not displayed correctly, you should raise a dispute for the same.

It’s advised to wait for at least 45 days before you look for your newest report or raise a dispute. Each lender may share their data in their own time. So, even if you clear all your dues for a certain period, these details will not show up on your credit report immediately.

Now let’s say you have the latest report in hand, but the data is inaccurate. So, you decide to raise a dispute with your lender. For example, you made your credit card payment, but it hasn’t reflected in your report. When you’ve resolved this issue, your lender should ideally share the updated data with CIBIL. If they haven’t, there will not be any change in your report or score. You will then have to contact your lender to submit the details to CIBIL. This is because CIBIL cannot change your report unless your lender reports it. Keep in mind though, if the dispute has been resolved in your favour, it will take up to 90 days to reflect in your credit report.

It’s important to thoroughly check your CIBIL report and raise disputes if you find any discrepancies.

Difference Between CIBIL Score and Credit Score:

The differences between CIBIL Score and Credit Score are given below:

One of the four main credit bureaus in India, CIBIL is associated with numerous major banks, Non-Banking Financial Companies (NBFCs), and housing finance companies. Experian, Equifax, and CRIF Highmark are the other three prominent bureaus. The Reserve Bank of India has granted licenses to each of these credit agencies. The CIBIL score refers to the credit rating determined by CIBIL.

Your creditworthiness as a potential borrower is indicated by your credit rating. Your credit history, including the total amount due, credit card bills, repayment history, the number of credit accounts you have, and the credit utilisation information are taken into account when calculating your credit score.

Does Checking Your CIBIL Credit Score Frequently Impact It

Many individuals think that checking their CIBIL credit scores or requesting a copy of their credit reports may have a negative effect on their credit scores. However, checking your own credit reports or credit scores has no effect on your CIBIL credit scores. In reality, checking your credit reports and credit scores from time to time is an important method of making sure your personal and account information is accurate. This might assist in identifying signs of potentially fraudulent activity

.Check your Credit Score

Credit Score for NRIs

NRIs with PAN cards who have previously utilized credit services will have a credit score assigned to them, calculated using the same algorithm that applies to resident borrowers. For NRIs planning to seek credit in the future, it’s advisable to monitor their credit score and take steps to improve it if necessary. In India, a credit score of 750 or above can significantly increase the likelihood of loan approval, provided all other conditions are met.

It’s important to remember that credit scores are not transferable across countries. For instance, having an Experian credit score of 750 in India does not guarantee the same score in the USA. Credit scoring is based on financial behavior within a specific country, not on global credit history. Therefore, even if you have a strong credit score in another country, you may still need to work on enhancing your credit score in India.

FAQs on CIBIL Scor

Will opting for a credit card decrease my CIBIL score? No, opting for a credit card will not decrease your credit score.
For how long does CIBIL keep the record of the defaulters? CIBIL is not required to publish the record of the defaulters, however, the CIBIL CIR contains the details of the defaults of a particular individual. The details of such defaults are on record for a maximum of seven years.
Is it possible for the CIBIL Score to change? The CIBIL Score will change based on the various factors such as any change in loan/credit account, credit repayment history, missed payments, etc. The score can also change when your lender carries out a hard check on your credit report.
Is there any other credit bureau apart from CIBIL that provides credit score/report in India? The three credit bureaus in India apart from CIBIL or TransUnion Credit Information Bureau (India) Limited), are CRIF High Mark, Experian, and Equifax.
What is Credit Information Report (CIR) and how it different from CIBIL Score? A Credit Information Report (CIR) is the complete summary of your credit history based on the last 5-7 years of credit and loan accounts. The CIBIL Score is a part of the CIR. The score is an indication of your credit/financial health that is calculated based on the various factors that prepare the CIR.
Who can access your CIBIL Score? Your CIIBL Score can only be accessed by CIBIL Members such as certain banks, your lender, you, and other authorized establishments.
How can I check my CIBIL Report? You can request your CIBIL report by visiting the cibil website. You will need to enter personal details such as name, PAN card number, date of birth, gender, etc., clear the personal verification process, and make a fee payment in order to access your credit report.
How does CIBIL get the information of your credit/loan history? The CIBIL Members such as banks and other government agencies provide financial information of an individual on a monthly basis to CIBIL in exchange for access to the credit reports and scores prepared by CIBIL.
Why do the lenders need to check the CIBIL Score? While reviewing loan/credit applications, it becomes essential for the banks to consider the repayment capability of an individual. The credit score and report help the lenders determine the repayment capabilities of an individual.
What kind of credit/loan account details are included in the credit report? The credit report will show the total credit/loan amount, EMI details, missed/late payment, lender’s name, and other related information.
Is it possible for CIBIL to delete or amend my credit information independently? CIBIL is not allowed to delete or make any changes to the Credit Information Report (CIR) independently.
What is CIBIL 2.0? CIBIL 2.0 is a new scoring model that TransUnion CIBIL Limited uses to calculate the credit report for individuals. Individuals with a new credit history of 6 months or less are assigned a score based on the risk factors involved in lending to new borrowers.
Will there be any impact if I check my credit score frequently? No. When you request your own credit score/report, it will be considered a soft check that doesn’t have any impact on the credit score.
What is a control number? The control number is a nine-digit unique number that helps CIBIL track your credit report. The control number is generated if and when banks access your credit report.
How do you correct errors in your CIBIL report? RBI has made it mandatory for banks to comply with an individual’s desire to access his or her credit report. If a bank declines a credit card or loan application, you can ask for the control number of your credit report. You can then contact CIBIL at info@cibil.com and communicate details of errors in the report.
How do a greater number of personal (unsecured) loans affect your score? A greater number of personal (unsecured) loans would also affect the score in a negative way since such loans have a high rate of interest compared to car or home loans and, therefore, are more likely to result in defaults.
Do late payments and high utilization of credit limits have a negative effect on your score? If you have missed payments on any of your loans over the years, your CIBIL score would be negatively affected. A higher utilization pattern equals to more repayments and, therefore, negatively affects your score.
Will opting for a credit card decrease my score? If you have a zero outstanding balance on your old credit card, there is no reason to unduly worry about it and close it. If you have a credit card with a clear payment history, it will not only reflect your responsible credit behaviour but also keep your utilization rate low, which impacts your score positively.
Can a person achieve a perfect CIBIL score? It’s crucial to remember that while a higher CIBIL score implies better creditworthiness, getting a perfect score of 900 is uncommon. A score above 750 is regarded by lenders as good, and borrowers with such scores typically qualify for favourable loan terms.
How quickly can a CIBIL score be raised? The length of time it takes to raise a CIBIL score varies depending on a number of variables, including the severity of the credit concerns and your attempts to resolve them. To see a discernible increase in your score, it typically takes several months to a year or more of prudent credit behaviour.
What is a CIBIL score of zero? A CIBIL score of zero or one indicates that there is no credit history information available for the borrower or that there is no credit history information available for the borrower. The CIBIL score of ‘0’ is equivalent to the letter ‘NA’.
Can I buy CIBIL score? Yes, you can visit the CIBIL’s official website where upon the payment of Rs.550 you can purchase your CIBIL score, the access to which you will have within 3 business days.
Do lenders make credit decisions based solely on the CIBIL score? While the CIBIL score is significant, lenders also take other variables into account when deciding whether to grant credit, including income, employment history, previous debts, and other criteria. One of the important factors they take into consideration, but not the only one, is the CIBIL score.