How Should I Read A CIBIL Report?

Continuously monitoring your CIBIL report is essential for staying updated with your financial health. It contains your CIBIL score which plays a crucial role in determining your credit eligibility. Also, it has other information as well that can promptly influence this score. Keep scrolling to know some crucial information that is present in this report and how you should read them.

Information Present in a CIBIL Report

Following are some crucial details that you will come across while reading a CIBIL report:

• Personal Information

There is a separate section in your CIBIL report that contains all your personal details. These usually include name, gender, date of birth, and other related information. Additionally, there are other details like passport number, PAN, Aadhaar number, Voter ID number, driver’s licence number and so on.

• CIBIL Score

The bureau takes into consideration your past financial activities for CIBIL score calculation. This score generally ranges between 300 and 900. Usually, a score above 850 is considered to be very good and increases the chances of getting loan approval. However, a lower score can pose a hurdle in qualifying the eligibility criteria of any credit type.

• Contact Information

This section of the credit report usually contains the communication details like call number, residential address, office address and email ID. Here, both your landline and mobile number are also present for instantly contacting you. Additionally, you will need to provide your current and permanent address. The presence of these data makes it easier for lenders to verify your loan application details.

• Account Information

This is one of the most important portions of your CIBIL report which contain crucial details like loan repayment history, credit card information and so on. There is a separate table where all the data shared by lenders are mentioned. This information helps the bureaus to accurately evaluate and assign a score to them.

• Employment Information

This section of the report contains data about your occupation and income at the time of loan application. Such information influences your creditworthiness and the ability for loan repayment. CIBIL bureaus take into consideration your employment duration, income pattern, and frequency of changing jobs while assigning a score.

• Enquiry Information

Here, all enquiries and applications that you are making related to loans and other credit lines are present. If the number of entries in this region is high, it can hurt your CIBIL score. This further makes it extremely difficult for you to get loan approval in future. Abbreviations like STD (Standard), SMA (Special Mention Account), SUB (Sub-standard), DBT (Doubtful), and LSS (Loss) are present here to communicate crucial information.

• Red Box

Here, you will get to see the currently on-going disputes regarding any loan-related matter. Also, once the disputes are resolved, this section ceases to exist unless some fresh disputes arise.

Furthermore, there are some important terminologies that you should be able to decode for understanding the report easily.

Important Terminologies Related to CIBIL Report

Below are some terminologies that you should be able to understand clearly to interpret your CIBIL reports accurately:

• DPD (Dues Past Day)

This usually refers to the number of days by which the EMI payment has been delayed. For example, if the payment due date is on 5^th November and you are paying the money on 7^th November, DPD will be 2.

• Settlement Amount

This is the amount that the borrower will have to pay a lender in case they are unable to pay the entire sum borrowed. This is usually lower than the actual amount and is decided mutually between the creditor and the debtor.

• CN (Control Number)

This is a 9-digit number generated when a lender accesses your credit score. It keeps a track of your CIBIL reports. Additionally, it also plays a key role in maintaining a borrower’s credit score and credit history.

• NPA (Non-performing Asset)

If you delay the payment of EMIs for more than 90 days, lenders will label your debt account as a non-performing asset. Once this happens, it will severely hurt your credit score and there will be a charge-off on your credit report.

• Written Off Amount

It indicates the leftover money from the amount that a borrower has to pay after settlement. The lender and borrower mutually decide the settlement amount.

• Amount Overdue

This refers to any payment that a lender has notably deferred from its due date. These can include the instalments and the principal amount.

• Written Off and Settled Status

This implies that there was a restructuring made in the loan agreement or that the borrower and lender have agreed to its settlement.

• High Credit

It refers to the highest amount that a borrower has billed using a credit card or overdraft bill. Additionally, it also includes the additional charges associated with its transaction.

Once you have a complete idea of reading a CIBIL report, you can instantly download it from the official website of a financial institution.

Steps to Download a CIBIL Report

Below are some steps that you will need to follow for downloading a CIBIL report:

Step 1: Navigate to the official website of a financial institution.

Step 2: Move to the CIBIL score product page.

Step 3: Click on the form available.

Step 4: Enter the essential details accurately.

Step 5: Agree to all the terms and conditions mentioned.

Step 6: Click on the ‘PROCEED WITH OTP’ option.

Step 7: Enter the OTP received on your registered mobile number.

Once done, you can instantly receive your credit report. However, if you notice that your CIBIL score is low, you can take several steps to improve it. These include timely payment of EMIs, maintaining a healthy credit mix, avoiding applying for loans frequently, keeping a check on credit card usage, and so on.

Reading the CIBIL report at frequent intervals can minimise the chances of errors in your report. This plays a crucial role in the prompt improvement of your CIBIL score. Also, these reports are available free of cost and can be downloaded hassle-free.