Here's what accessing your CIBIL report can do for you!

We have always stressed on how a good credit history is important for accessing financial help. But if you still feel that applying for a loan is an easy job and you have all the documents in place, hold that thought for a moment. BI India now list down 5 reasons why you should access your CIBIL report and CIBIL TransUnion Score before you apply for a loan.

“Your CIBIL Report and CIBIL Transunion Score provides a testimony of your financial discipline to banks and financial institutions for approval of your loan or credit card application. A healthy CIBIL Report and a high CIBIL TransUnion Score indicates that you are managing your loans and credit relationships well and are financially savvy,” says Harshala Chandorkar, senior vice president – Consumers Services and Communications at CIBIL.

You are always ‘loan ready’

“Along with your income to debt ratio, your credit history as reflected in your CIBIL Report is a vital parameter for the approval of your loan application. It is important to do your homework and assess your credit eligibility before applying for a loan. Along with calculating your income to debt ratio you should also be aware of your credit history and credit score. Therefore before applying for a loan or credit card you must access your CIBIL Report and CIBIL TransUnion Score and understand its components so that you do not face any unpleasant surprises in the form of loan rejection because of low CIBIL TransUnion Score,” says Chandorkar.

Manage your accounts

A CIBIL report helps you keep a tab on your loan and credit card accounts. “It is a useful tool to monitor performance on all your loans - be it loans that you have availed, guaranteed or co-applied. It also provides you a snapshot of your credit cards- the ones you own and the ones you may have provided to your spouse or children as add on credit card, she adds.

Ensure correct information

Accessing your CIBIL report on time will allow you verify if your credit history is accurate or if there is any discrepancies in you report. “If you find any discrepancies in the information on your report you can always get it corrected by approaching CIBIL through its online dispute resolution forum. CIBIL can also help you resolve any discrepancies or disputes on your credit report through the online dispute resolution process on our website,” notes Chandorkar.

Credit Health Check Up

“Just like your regular health check you must also run a financial health check up to be in control of your financial stability. Reviewing your CIBIL Report will provide you insights into your financial health with reference to your credit exposure- how much debt do you hold?, how have you being repaying your loan EMIs and credit card bills?, how many times have you applied for a loan or credit card? Do you have detrimental flags like “Settled”, “Written-Off” or “Suit Filed” against any of your loan accounts or credit cards?. This credit health checkup will help you take corrective and preventive measures in time for maintaining financial hygiene and a healthy credit report,” she suggests.

Better negotiations

Accessing your CIBIL report helps you in negotiating the terms and conditions with your lender. According to Chandorkar, banks and lenders now increasingly rely on CIBIL Report and CIBIL TransUnion Score to decide if the loan should be approved. “The consumer can use this powerful reputational collateral to his or her advantage. Accessing you CIBIL Report before applying for the loan may give you better negotiating power with the lending institution for availing the loan at better terms and conditions, if you have a high credit score and a healthy CIBIL Report,” she states.