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Sudindra V R
The first credit information company in India started in the year August 2000, named
CIBIL-Credit Information Bureau (India) Limited and launched its operations in 2004.
CIBIL was created to evaluate and make credit decision of individual loan application in
India. CIBIL consists of two products, Credit Information Report and CIBIL Transunion
score. Credit bureau works as a central repository, which contains the commercial and
consumer retail borrower credit history. It helps both consumer and lender to reduce credit
life cycle, secure faster credit and at a better return. Share holding pattern of CIBIL
includes: 55% Trans Union International Inc. and remaining 45% held by Bank of Baroda,
Union bank, Indian overseas bank, ICICI bank, HSBC, SBI and India Info line.


CIBIL Transunion score: individual credit score ranges 300 to 900.
Personal information: this section has name, Date of birth and gender reported to
CIBIL by the members. The identification list reported by members or lender like
passport number, PAN, Voter ID, Drivers License etc.
Data received through an Enquiry: apart from identification list, an individual
provided any other data will reflect in credit report.
Contact information: correspondence address, employment or business address,
mobile number and email address information available in contact information
Employment information: this section consists of information on occupation and
income at the time of applying for financial facility and the same will be reported
by member.
Account information: it consists of details of your credit cards and loans. It
contains name of the lender, type of credit facility, account number, single or jointly
held, date of last payment, loan amount, current balance, and previous 36 months
month on month repayment records.
Enquiry information: this section provides details regarding enquiry for financial
facilities with different lenders along with name of the lender, date of application,
type of loan and size of loan.

To analyze the credit and financial health of individuals credit score plays important role.
Credit score is the CIBIL Transunion score consist of 3 digit numerical which summarizes
the credit history of consumer or commercial borrower. The score ranges from 300 to 900,
higher the credit score stronger the credit profile, lower the credit score least credit worthy
profile. In some cases score can be 0 or -1. -1 score is returned for No hit or subject with
only enquires and 0 is returned for subject where the earliest open trade is less than six
months old.
300 is the worst score with bad credit health, where the lending institution will
refuse to provide financial assistance.
Below 700 denotes bad credit, poor understanding of finance and possibly over
indulgence and individual needs to improve on his credit management.
700 and above is good score, well managed credit transaction, understanding the
fianc and which can attract lender very easily.


Credit score is an indication of probability of default of individual consumer based on their
credit history, credit usage and loan repayment behavior.
The major factors affecting credit score includes:
Late payment or default in the recent past: remember once individual have opted
for loan never miss a payment or post pone the repayment date frequently on your
loans, utility bills, mobile bills etc. which affects his/her credit score.
High utilization of credit limit in credit cards: always have a limit in his/her
credit card usage, if you are frequent user of credit card and always reach nearer to
credit limit will increase the repayment burden in turn affects credit score.
High percentage of unsecured loans or large number of unsecured loan
(commonly personal loan, credit card): having higher number of unsecured
loans with high utilization negatively impact on credit score, as it carries higher
interest rates compare to secured loans.
High number of credit enquiries in your credit report: enquiring large number
of loans or credit card with too many institutions will affects the individual credit


Pay the installment on loans regularly in a timely manner with diligent track of all
the installment in case of multiple loans.
Always pay full payment on credit card instead of minimum payment, in case of
difficulty few time make minimum payment without fail. Credit card is on
revolving basis, which helps in building a faster credit score.
Avoid taking multiple credit card or applying for multiple cards unnecessary which
burdens additional credit exposure, reaching multiple credit limits and tracking
If you have existing credit card and not using very frequently or low credit
utilization, will positively impact on credit score.
If possible early repayment of debt or use of special income to prepay existing debts
makes financial secure and helps in improving your credit score.
Avoid joint account holder or guarantor in loans or credit card facility.
Avoid settlement of your loans, it implies the inability to pay the past dues.
Sometimes your settlement may be only principle amount which adversely affect
the credit score.
Check your credit report for mistakes: very often with the name mismatch or date
of birth matching, there are many misreporting or delayed reporting from the banks,
which may result in faulty information.
Procure closure documents and report to CIBIL when there is faulty information:
always remember to procure a no objection certificate letter or no outstanding
payment on your loans. In case of faulty information individual can always rectify
on immediate basis.
The awareness of credit score and credit report is most important for an individual financial
life. Credit score is an indicators of your financial health, faster and hassle free credit
approval and barometric of your financial discipline. To maintain acceptable credit score
one has to pay installment regularly, track the payments on regular basis, limiting the use
of credit card limit, avoid partial settlement of loans, regularly monitor and check your
credit score and rectify the error or misrepresentation at the earliest.


Neetu , A study of awareness about CIBIL and credit information reports among
customers at commercial banks, International Journal of Research Aspects of
Engineering and Management , ISSN: 2348-6627, Vol. 1, Issue 1, FEB 2014, pp.
Dr. A. Vinayagamoorthy and M. Somasundaram, A Study on Personal Loan in
India, GRA - GLOBAL RESEARCH ANALYSIS, Vol 2. Issue 5, May 2013 , ISSN
2277 8160
Shiv Kukeja, CIBIL Credit Score Negative Factors and Ways to Improve your
Score, OneMint, 14/08/2012
Article, Credit score below 700 is dangerous for you, Article published by
IndiaInfoline., Five Factors That Impact Your Cibil Score, 14th sep 2014