Why CIBIL report matters?

New Year’s resolution gives you a chance to work on areas we otherwise ignore in the rate race of life. Your CIBIL credit report is a report card you must include in your resolution

The start of a new year is a great time to look at things afresh and make the much needed changes in your life. The usual suspects included in your new year’s resolutions are health related issues. This year include a review of your financial health report card - your credit report.

Solve banking issues
At times you may have “settled” a disputed loan or payment but in the other party’s books it still shows at outstanding. This will reflect badly in your CIBIL report. While reviewing your CIBIL report you can catch any such disputed payment areas and contact the lender to make the corrections.

Rectify mistakes
CIBIL reports are not always accurate. They rely on data that the bank supplies to them. At times this data may be outdated. For instance you may have paid back your unsecured personal loan and the bank has not yet updated this in your records. You should file a ‘dispute request’ with credit bureau at the earliest. You have to write an application to them regarding the errors in the report. The format of the application and their address can be found on the website of the respective bureau.

Learn from the past
Your CIBIL report is a summary of your financial transaction in the last 3 years. It a great way to review your borrowings, payments and spending and figure outwhere you may have mis-stepped so that you do not make mistakes in the future.

Prevant identity theft
Checking the accuracy of your credit report regularly can detect signs of identity theft early. Verify your credit history for incorrect information. Pay particular attention to the inquiries section of your credit report. Unauthorized entries for pre-screened credit offers could be a sign that a thief has requested credit in your name. It should be a red alert for you.

Shapes your future
Not only do credit reports lay bare your past, they are also an early warning system for the future. If your credit score is falling you can make quick corrections to stem the fall and turn around your credit history to a more favourable one. Examining your credit report will tell you where your mistakes lie and hence corrective action is easier.

While your credir report contains all relevant data to ascertain your credit score and your financial standing thereby, it is not an exhaustive compilation. There are some things your credit report can’t or won’t tell you,

• Savings and investment data
• Credit approval status and analysis
• How to improve your credit score
• Your credit utilisation ratio
• Reason for settlements
• Defaulters list
• Monthly payment history beyond three years.

What is CIBIL
CIBIl which stands for credit information Bureau (India) Limited, is an ISO 27001:2005 company. A first of its kind, it is india’s premier Credit information Company (CIC). Founded in the year 2000, it has established itselt as a key participant of the Indian financial system. The company records credit related information of individuals as submitted by registered member institutions. CIBIL has technical partnerships with TransUnion International Inc and Dun and Bradstreet.