The Credit Information Bureau (India) Limited (CIBIL) is one among the six credit bureaus in India where your credit information is stored. Registered under the Securities and Exchange Board of India (SEBI), one of the major responsibilities of CIBIL is to collate your data and assign a score to you based on the analysis. Your CIBIL Score is assigned between the range of 300-900. When you apply for a loan at any financial institution, this score is shared with them upon request. Taking into account this score as well as a couple more factors, your loan will be accepted or rejected.
You can now check your CIBIL score for free and also receive a comprehensive financial evaluation, with the help of the Financial Health Check Report available on Finserv MARKETS! The Financial Health Check Report is not just your credit report, but a detailed analysis of your finances that helps you chart out a way forward in your loan application process.
Your bank and other financial institutions, if any, submit your credit data to CIBIL every month. Upon receipt of this information, your CIBIL report or credit report is drawn up. This report assesses your creditworthiness and has information pertaining to your loan details, late payments, missed payments, and so on. In order to put your best foot forward when it comes to managing credit, it is important that you can understand which types of credit is covered and which isn’t.
Here’s a list of these items that your lenders cannot see on your credit report.
1. Utility bills
Though the CIBIL score is calculated on the basis of a number of factors like your loan defaults, loan applications, and your loan repayment history, data of your utility bills will not be visible on your CIBIL report. A utility bill is an amount payable by the office or a household for electricity, water, gas, society maintenance, telephone bills, etc. Even in the case of payments made online by net banking or through your bank account, these bills will not be visible on your CIBIL report.
2. Spouse’s credit information
Credit bureaus do not consider your spouse’s credit score or records, when compiling your own. Thus, your spouse’s credit information will not reflect on your credit records. If you are looking to apply for a loan for individual purposes, only your own credit report will be given optimum importance. However, to be on the safer side, both you and your spouse must maintain a good credit score so that your loan eligibility isn’t affected in the slightest of ways.
3. Status of employment
Your credit report is devoid of any data relevant to your employment status. In the event that you have mentioned the names of your employer during any credit application, it will end up in your report. However, the duration of your employment will not be included in this information.
Moreover, your credit report will not have any record of your salary. Only the relevant data like your ability to make payments, credit habits, and the timeliness of your repayments will be reflected in the credit report. Your Credit Information Report (CIR) will have no details pertaining to your net worth, income, or even earning capability.
5. Non-traditional financial loans
When you’re in dire need of money, you may opt to borrow from sources like relatives, pawn shops or money lenders. These non-traditional financial loans will not be reflected on your credit report and will have no bearing on your credit score.
6. Interest rates of other loans
Your credit report will not reflect any information pertaining to the interest rates of previous loans. All in all, as long as your loan is repaid on time, the rate at which you take a loan does not matter.
The Importance of understanding the contents of a credit report
Knowing the factors which contribute to your credit score- and those that don’t – can help you in improving your CIBIL score. To maintain a good credit score, you must ensure that your credit utilization isn’t high. Also, it is important that you ensure that your credit dues do not exceed more than 30-40% of your credit limits on all your cards. Maintain a healthy balance between secured and unsecured loans.
Your reliability as a borrower depends on your credit report. Thus, before approving your loan application, financial institutions make it a point to check your CIBIL score. It is essential that you are aware of your credit score to understand your loan application eligibility. On Finserv MARKETS, you can get your hands on a free credit report and CIBIL score, all at the click of a button. With the help of the Financial Health Check Report, you can get a personalized analysis of your finances and future insights to help you make informed decisions and improve your credit score.
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