The economic crisis has spelled doom for those taking a loan in India. Most of them are struggling to repay the debt due to delay in receiving their salary, downturn in business followed by urgent medical or health conditions. 82% men defaulted on their loans as compared to 18% percent women due to late payments. Interestingly women were able to repay the borrowed amount more swiftly as compared to their male counterparts.
Loan defaults can have a negative impact on your CIBIL report which in turn reflects in your credit history. A low score when you check your CIBIL score online could be a problem, if you plan to take a loan in the future.
What constitutes a credit report
TransUnion CIBIL is the first credit information company in India which maintains monthly reports including the loan and credit card history of individuals obtained from banks and other financial institutions. On Finserv MARKETS, you can access a customized financial health check report, including your free CIBIL score with insights to help you be more financially stable and aware, so that you can take investment decisions in the future, which are in tune with your goals and aspirations. Your CIBIL report or credit information report (CIR) is a comprehensive document which details your past credit history such as a home loan, car loan, personal loan or an overdraft facility availed by you. It consists of 6 broad sections:
1. Personal information
In this section, you fill in personal details such as your name, permanent account number (PAN), date of birth, gender, passport, voter ID, ration card, driving license and Unique Identification Number as shared with your bank.
2. Contact information
This section includes your address, which can be permanent, current or that of your office, along with the respective Pincode. It also shows your mobile number, landline number and office telephone with STD code as applicable. Email addresses shared are also mentioned.
3. Employment information
Income details shared by you when purchasing a loan from a bank such as your occupation, frequency( monthly or annual) of income as well as net or gross value is indicated.
4. Account information
This is the most detailed and important aspect of your CIBIL report. It describes the credit you’ve availed from various financial institutions over the years, including lender names, type of credit taken (auto loan, personal loan, overdraft, credit card), date of loan opening and closing, outstanding loan amount, date of last payment, current and total loan amount. A month by month record, ranging upto a period of 3 years of payment history can be seen at a glance in this section. Any delay or irregularity in payment made is reflected here.
5. Enquiry information
You can see which lending institutions are requesting or enquiring for information on your credit history. The purpose of enquiry and the amount is also indicated.
6. CIBIL score
This is a 3 digit number and an indicator of how creditworthy a financial institution thinks you are, before they disburse credit to you. Your free CIBIL score is usually a number between 300 to 900 and a score above 750 is just right for you to get that loan you have been eyeing for long.
Importance of CIBIL score
Your free CIBIL score is an indication of the debt that you owe as well as how regular and prompt have you been with your repayments. A higher score ups your chances of securing loans in the future at lower interest rates. It also hastens the decision-making process of financial institutions to gauge a prospective borrower as a good investment and lead to faster, even instant loans. At the same time, credit bureaus can predict the probability of future defaults with a thorough analysis of your past as well as present borrowing trends.
Factors such as the time taken to repay a loan, regularity of payment, ticket size of the loan, utilization of credit and the type of loan taken, all of these have a considerable impact on your credit score. Also, it is important to remember to not be swayed by easy access to credit and borrow more than you can repay. It could have serious effects on your credit reputation if you fail to repay the loan. Such a move can, in turn, have you trapped in a vicious circle of debt. If you see a healthy number when you check your CIBIL score online, it means that you are alert, aware and on track with your credit portfolio.
The free Financial Health Check Report available on Finserv MARKETS is much more than a reflection of your CIBIL score. This simplified report gives you a complete assessment of your financial performance across parameters such as history of repayments, duration of credit, type of credit taken and its utilisation.
If you want to read more visit everything you need to know about CIBIL Score only at Finserv MARKETS.
Recommendation is also provided to achieve a balance between your credit health and savings capacity to help you make wise investment decisions in tune with your aspirations and goals. Financial Health Check Report available on Finserv MARKETS also gives valuable customized advice to help you improve your credit score to get attractive offers from financial institutions in the future. And all this is absolutely free! So what are you waiting for? Check your CIBIL score for free on Finserv MARKETS and also avail a personalized report that can take you closer to achieving your dreams and ambitions.
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