TransUnion CIBIL Limited is one of the major credit bureaus in India that collects all the credit information of individual customers and compiles them in the form of credit reports. Based on these reports, the agency also assigns credit scores to individuals. These function as one of the preliminary eligibility standards when applying for unsecured loans.
As a borrower, you should be aware of how to read and understand your credit report along with all its details. The following are the different parameters you can find in the credit report generated by TransUnion CIBIL:
Personal information: This consists of your name, date of birth, PAN number, passport number, etc.
Contact information: This includes details of your address, mobile number, email ID.
Employment information: Here you can find details like your, occupation, income, income type, loan account information, etc.
Account information: This is one of the most important segments of your credit report which contain details about your credit cards and loans, including loan account number, financial institution’s name, debt category, current loan balance, amount overdue, EMI amount, payment frequency, etc. You can also get the payment status of all your loans in this section.
Enquiry information: This section will help you know which financial institution has enquired for your credit report, along with the date and purpose of the action, etc.
Based on these parameters, TransUnion CIBIL evaluates the credit score.
TransUnion CIBIL examines different pointers and evaluates them according to a predetermined weightage to calculate your credit score:
|Credit History||30%||TransUnion CIBIL looks at your past repayment record from various financial institutions. Late payments can seriously lower your overall credit score.|
|Credit Utilisation Ratio||25%||This ratio shows how much of your given credit limit you've used. Aim for a ratio below 30% for a better CIBIL score.|
|Credit Mix||25%||A balanced mix of secured and unsecured loans in your credit portfolio shows lenders that you can handle different types of debt effectively.|
|New credit Enquiries||10%||Lenders check your credit report when you apply for a loan, which are noted as hard inquiries. Too many in a short time can significantly drop your CIBIL score.|
|Average of Loan Account||10%||TransUnion CIBIL considers the average age of all your debt accounts. Keep your old accounts open, even if inactive, for a better credit score.|
Here is the step-by-step process to check the TransUnion CIBIL score free of cost:
Click on the “Check Free CIBIL Score” button
Fill in the requested personal details like your name, mobile number, date of birth, email address, PIN code, and your PAN.
After providing your details, click on “Get OTP”
Enter the OTP received on your registered mobile number
On successful OTP verification, your CIBIL Score will be shown on your screen
Log in to view and download your detailed credit report from TransUnion CIBIL
Before approving loan applications, the most crucial parameters that lenders look into is your CIBIL score. This score, which ranges between 300 and 900, depicts your creditworthiness, allowing the lender to assess whether you are a risky borrower or not.
Thus, your chances of loan approval depend on the TransUnion CIBIL score. In this regard, a score of 750 or more is considered ideal across most lenders in the country. If you have a score lower than this, you may face difficulty in obtaining a credit.
Some lenders may approve your loan application even if you have a poor credit score. However, in this case the rate of interest would be on the higher side.
The main reason why your TransUnion CIBIL score might look different from that of other credit bureaus is because different credit bureaus use different algorithms to calculate this score.
TransUnion CIBIL is a legitimate credit bureau in India. It is one of the three major credit bureaus in the country, so its scores are reliable and consistent.
Several factors can result in a low TransUnion CIBIL score, including late repayments, paying only the minimum amount due, frequent credit inquiries in a short span, having an inappropriate credit mix, and closing older credit accounts.
No, TransUnion CIBIL is a private company, which partners with different financial institutions to collate credit reports of different individuals.
Yes, several banks utilise the TransUnion CIBIL score to know the creditworthiness of borrowers. You can generate your credit score through your bank by providing a minimal charge.
If your TransUnion CIBIL score is always higher, it might mean you are good at utilising your credit. However, a higher credit score without any credit history might also mean some discrepancy in the report.