Many of us know about credit cards and also to some extent know that the way we use credit cards (and by extension loan products) determine what our credit worthiness is which in turn affects our credit score. In India, there are four different bureaus (CIBIL, Experian, Equifax, and CRIF High Mark bureaus) that keep track of our financial behavior by aggregating the data from financial institutions to assign a credit score to us.

Out of these CIBIL is the most popular so much so that sometimes we use credit score and CIBIL score synonymously. Just like the rest of the bureaus, CIBIL also generates a score based on financial behavior history and also generates a detailed report. Lets understand about CIBIL report in more detail

1. What is CIBIL Report?
2. How to read a CIBIL Report?
   1. CIBIL Score
   2. Personal Information
   3. Contact Information
   4. Employment Information
   5. Account Information
   6. Red Box
   7. Enquiry Information
3. Some Important Things You Need to Know While Analysing Credit Report
4. What is CIBIL Score Range?

What is CIBIL Report?

CIBIL, founded in 2000, manages India’s credit information for individuals and financial institutions. It generates timely reports, helping individuals understand their credit repayment behaviour and sanction loans and credit cards. Knowing what is CIBIL score and how to read CIBIL reports is essential for your financial well-being.

How to read a CIBIL Report?

Given below are different sections that you need to look for in a CIBIL Report. Following these will make your task easy:

CIBIL Score

The first section of the credit report is your CIBIL score. Lenders do a CIBIL score check to determine your creditworthiness while evaluating your loan application. The 3-digit number ranges from 300 to 900. The range of your credit score depends on your past payment history and current obligations, payment defaults, and credit card usage. Sometimes, the score may indicate NA or NH, which might be there for the following reasons:

• No credit history
• No credit activities in the last few years
• No credit exposure, and all add-on credit cards

A score closer to 900 is favorable for obtaining new credit products. That means the lending institution will feel more confident in lending you funds.

Personal Information

The second section contains details like your name, gender, and date of birth. It also includes your identity information, like your PAN, Aadhaar number, voter ID number, passport number, and driver’s licence number.

Contact Information

This section contains your residential, office, temporary, and permanent address, email address, and telephone number.

Employment Information

This section covers details regarding your income and occupation when obtaining a new credit facility.

Account Information

This is the most important section of the CIBIL report. Your Credit Score largely depends on the information in it. It contains all the details regarding your past and current credit products. The section has a table comprising columns with your lender’s name, type of credit product, ownership type, account number, date of account opening, loan amount, date of last payment, outstanding balance, and a monthly record of payments.

It contains DPD (Days Past Due), which is the number of days an account payment is due. The most positive values in this column are STD or 000. All other values imply past-due payments. XXX means that the bureau has had no payment-related information for the past few months. Similarly, 030 means that an account payment is late by 30 days.

Red Box

A red box above ‘Account Details’ indicates disputes in the account information. When you read your CIBIL report, you might see a red box next to the fields under dispute. You can have the box removed after closing the conflict.

Enquiry Information

The section contains information about any recent inquiries you or lenders have made regarding a credit application. Each time you make a credit-related inquiry, the lender performs a CIBIL score check to know your credit history. This inquiry gets recorded in the credit report. Too many credit inquiries within a short period represent credit-hungry behavior that makes lenders believe that you are a risky borrower.

Some Important Things You Need to Know While Analysing Credit Report

Here are a few things to keep in mind when analysing your credit report and checking CIBIL score range online for free:

1. DPD (Dues Past Day): This represents the number of days since the repayment due date. Ideally, it should be zero.
2. CN (Control Number): A 9-digit reference number for contacting CIBIL regarding report-related queries.
3. Settlement Amount: An agreed-upon amount between the lender and borrower in case of a payment dispute, usually lower than the loan amount.
4. Written Off Amount: The remaining amount from the total loan after a settlement between borrower and lender.
5. NPA (Non-performing Asset): Payments overdue by more than 90 days.
6. Amount Overdue: Unpaid payment to a lender, including loan installments and principal amount.
7. High Credit: The total amount due from the borrower on an overdraft or credit card, including interest and fees.
8. Written Off and Settled Status: Indicates a settlement or restructuring of the loan agreed upon by the borrower and lender.

What is CIBIL Score Range?

The CIBIL score ranges from 300 to 900. Any CIBIL score above 750 projects you as a capable borrower worthy of new credit. Finance providers have the right to reject your loan application if your score is below that threshold. Before applying for a loan or credit card, receive your CIBIL report on the bureau’s official website and read it carefully to see how it has segregated your information.

Here is a list of credit score ranges:

CIBIL Score Range	Creditworthiness	Approval Probability
Less than 600	Poor	Low
600-649	Fair	Medium
650-699	Good	Medium-High
700-749	Very Good	High
750-900	Excellent	Very High

CIBIL calculates the credit score based on the following parameters.

• 30% weightage to your payment history, which indicates how consistently you have paid your past loan EMIs and credit card bills.
• 25% weightage to your credit utilisation, which is the percentage of available credit you use on average.
• 25% weightage to credit duration and type, which indicates your experience in handling different credit products.
• 20% weightage to factors like the number of credit accounts and credit inquiries.

Have you seen your credit report recently? Did you observe anything that was missing or incorrect?Feel free to share your views in the comment section below.