How To Update Your CIBIL Score Online

By now it is evident that what is the importance of your credit score and credit report. There are four bureaus in India, viz. CIBIL (Credit Information Bureau India Limited), Experian, Equifax, CRIF HighMark. These are the four bureaus that offer credit report and score of any individual. Now as well know that score is made up of 5 parameters: payment history, an amount owed, new credit accounts, account length and the mix of credits; different bureaus have different algorithms to check an individual’s score. A report, however, is the detailed information of how the score is made, and various transactions associated with an individual.

As CIBIL was the first bureau that was established in India in association with TransUnion, many people may consider credit score as CIBIL score and credit report as CIBIL Report. The score ranges from 300 to 900, where 300 is considered the lowest and 900 is considered highest. Any score that is 750 or above is a good credit score. The benefit of having a 750 or more score is getting the loan or the credit application approved easily with better interest rates. A score ranging from 600 to 750 is average and would take more efforts in getting loans and credits approved but with a higher rate of interest on them. And for anyone with a score below 600, it is nearly impossible to attain any credit. When the score is low, the most priority is to to get it to 750 level. Also, these days, a score is not just a measure of getting a loan and interest rate easily but it is a credibility score for many places. It is checked for jobs, visa applications, important study locations. Your score shows your responsibility towards the finances and how efficient are you in handling them!

So when you are planning to increase your CIBIL score, what would you do? As the parameters are explained, you have to work closely towards all the factors. First of all, start repaying all the debts and clear the old mess. Also, take a close look at the report. At times, it may happen that the transactions that make your score low, are not made by you. So, there is either fraud or identity theft that has happened with your account or using your information or some of the details are wrongly updated. What to do in such case? CIBIL has a dispute raising method online.

Go to the website and raise a dispute with the bureau. They would check the application and verify the error. Once it is they cross verify and check the issues, you score would be updated and unwanted data will be removed from the report.

This is the case when a dispute is to be raised, but what if one wants to update the cibil score online? Well, when you make any credit or related transaction, the information within a few weeks is passed to the bureaus. For example, you have applied for a car loan and a bank is processing it. So, first of all, it is reflected in the report as the hard inquiry. Once the loan is approved and the transaction starts, with all the EMIS which you pay including the down payment, the information is updated in the report. The banks and the NBFCs have to pass this information to the bureaus. Sometimes it may happen that some information is not updated in a particular report of the bureau, but do not feel hesitant to connect to the bureau and send an application to update that particular update which is missed. Banks at a time may miss passing the information.

So, there is no specific method to be followed when the score is to update in the report over the internet in normal norms, but yes, while dispute; do not waste time. Make sure you fill the form and raise it online as soon as you can.

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What’s In Your Credit Report

Your credit report contains information regarding your credit history. The report shows the kinds of credit that you use, whether or not the bills have been paid on time, status of your credit accounts, loan repayments and the duration for which your accounts have been open. A credit report gives lending institutions a full view of your credit history. Besides this, the report is used by the credit bureau to generate your credit score. Banks and other financial institutions will take credit score and report into account, along with other details, to determine if you are eligible for a loan.

 

Enquiry and account information are two important aspects of your report that are studied in great detail by financial institutions. The enquiry information contains details regarding your loan applications. If financial institutions see multiple enquiries have been made in a short period of time, they will be cautious about entering into an agreement with you. The reason being, multiple enquiries reflect a credit hungry behaviour, which is a put off for lending institutions. The account information section shows details concerning your credit facilities. It contains the name of the lending institution, account number, kinds of credit facilities, loan amount and EMI payments.

 

Besides the account information and enquiry information sections, a CIBIL report will also contain CIBIL score, personal information, contact information and employment information. CIBIL score is a three-digit number ranging from 300 to 900 and the closer the score is to 900, the better. The personal information section contains details regarding name, date of birth and identification proof such as PAN number, passport number etc. The contact information will contain the address and telephone numbers. And finally, the employment section will reveal your monthly as well as annual income.

 

Your CIBIL report will reveal a number of things about you to the financial institutions. It shows the lenders how well you manage finances, if you are financially disciplined, whether you can be trusted with repayments etc. They will determine your creditworthiness by what they see in your report.  Hence it is very essential to maintain a healthy report and a good score. If you get the opportunity to avail freebies such as free credit report India or check my CIBIL score online free, make every use of it.

 

It is important to review your report just like you do for bank statements. Get into the practice of checking the report at least two or three times a year to avoid any unnecessary surprise. By regularly checking the report, not only can you spot errors (if any) and get them corrected, you can ensure that you do not fall victim to identity theft. If you see open accounts that you had nothing to do with, bring it to the notice of the credit bureau and the respective financial institution.

 

The Credit Information Bureau of India, at the moment, does not provide free credit reports. However, according to recent news articles, the bureau will soon begin to provide individuals with one free credit report a year. They are likely to begin doing so by the end of the year, according to news reports.  The purpose behind this is to help people check their scores and raise a dispute if they spot any discrepancies.

 

While you may not be able to avail free credit report India from the credit bureau right this moment, you can check free credit report India from the website of Freescoreindia. Freescoreindia has tied up with Credit Sudhaar to provide free credit reports. I, as a client, can also check my CIBIL score online free through the company website. In order to check my CIBIL score online free, I would be required to provide basic information regarding name, email ID and contact number. The reason why I, as a client, am trying to check my CIBIL score online free also needs to be stated.

 

It is of utmost importance to check your score and report at regular intervals. Hence if you ever see the option to check free cibil report India or check my CIBIL score online free, do not let it go. Be wise and stay updated about what is in your credit records. Striving to maintain a healthy report and a score above 750 will help ensure that you have a smooth financial journey.

 

How to Keep Track of Your Credit Score Easily

Your credit score is a benchmark number for your credit worthiness. The banks and financial institutions always request your CIBIL score details before accepting a loan or credit card application. If you have a good score between 750 to 900 points you are considered as a less risky prospect for granting a loan. Thus it is very important to maintain a good credit history and score.

In order to keep track of your credit score the easiest step is the first step. All you need to do is keep a track of your credit report. For this, simply check CIBIL score online for free time or make a quarterly schedule for the same. If you fail to study your CIR regularly, chances are you could be affecting your score unknowingly. Sometimes a missed-report by bank is enough to bleed the score. So keeping a track of the report ensures that you keep a track of all of your credit activities.

With credit report in hand you would know how many loans and credit cards you owe. You can easily calculate your income to loan ratio. Your credit percentage should always be 45 % or below the income level. If EMIs for credit card expenses and loans other than home loan total more than 25 % of your income you should consider it inappropriate. As long as you could maintain a manageable income to loan percentage you are less likely to fall into debt trap and miss the payment.

To maintain a decent score, it is mandatory to have a clear credit history wherein there is no lapse in repayment. Thus timely payment of loans and bills is one of the most important steps to add to your credit score.

Some tips to ensure timely repayment of balances-

  • You can try to put all your bills details handy in one place so that you don’t miss any of them ever. Use a computer excel sheet or maintain a journal for the purpose.
  • You can also consider to make a habit of paying out on a same day each month. This avoids least management of bill payments.
  • Always carefully note down the last due date for payment. It is a good habit to make payment well in advance rather than enjoying the last day ride.
  • Use an automatic payment via your bank account. This ensures regular payments. However you would need to make sure your account holds enough funds always. Check bounce can have a very negative impact on your score, so beware of this fact always!

When you study your report, be vary of any mistake in personal information or account information. Re check if all the credit related information is true. If there is an error, you should raise a dispute with the bank at the earliest. Also, never ignore an unidentified query or action on CIR.

Other than your repayment habits, your card plays a major role in maintaining a good score. As it is easy and convenient to use a plastic card for your day to day expenses, it is easier to increase CIBIL score with that card, provided you keep clearing the card balance before the due date every month. Unpaid credit bills and large card balances can heavily damage the score.

 

When you keep a good care of your credit score, you can be future safe for credit. Another way to increase the score is to keep your old credit card account with good history with you. Never close this card. Old card would not only grant a positive and longer credit history but would also emphasize on unrestricted repayment history. These two factors make you a desirable prospect for credit.

 

However you should not use your card for all expenses. For, your credit utilization would be very high in that case. You should instead use up to 30 per cent or lesser credit limit provided to you. This helps you maintain a healthy CIBIL score. Sometimes bank might offer you better credit limit on account of your good credit rating. Accept the increased limit as it will improve the credit utilization further and help your score. The increased limit should never be a means to increase the expenses.

 

Last but not the least, you should also pay attention to the accounts of the co-signors, joint account holders, or for the ones’ you signed as guarantor to. If any of these parties fail to repay they would directly damage your report as well.

All in all it is easy to manage the score if you follow these tips.