CIBIL

Understanding your Credit Score

& Why it is important

-By Gaurav Raj

About Credit Companies

• Credit information • Credit Rating

Company (CIC) Company
1. CIBIL
1. CRISIL
2. HIGH MARK
3. EXPERIAN 2. ICRA
4. EQUIFAX 3. FITCH
4. S&P etc.
TransUnion CIBIL

• CIBIL- Credit Information Bureau of India Ltd.

• Maintains files of 600 million individuals & 32
million businesses
• FIs have to share customer data with CIC to get
customer wise report
• Score updates in 30 days
Parts of CIBIL CIR (Credit Information Report)

1. Personal Info: Name, Father’s Name, Address,

DOB etc.
2. Score (300 Highest Risk-900 Lowest Risk): Tells
about risk grade of a customer
3. Summary
4. Individual A/C details
5. Individual A/C enquiries
6. Additional Info.
 Credit Score-
Probability of default or
To understand customer default risk
•
CIBIL:
2 types of Score

CIBIL Transunion
Personal Score Score (Banks
preferred)

Accounts for all

For Unsecured
types of exposure
Loans only like CC,
(Secured,
personal Loans
Unsecured)
Meaning of Score
• -1: No credit history (Reason: Bank has no association with CICs;
impossible as RBI guidelines all the banks to be a part of all 4 CICs,
some cooperative banks may not have.) Improper Reporting, data
Rejected
• 0: Insufficient history, not updated in last 2 years
• 1: Only 1 month history is available
• 2 : Only 2 month history is available
• 3 : Only 3 month history is available
• 4 : Only 4 month history is available
• 5 : Only 5 month history is available
• 300-900: History of the last 6 months & more

TRUST SCORE: by Credit Vidya fintech company

1. for the people not having credit history/score.
2. Mapped based on social media profile using public presence of
that person.
What exists in the CIBIL Report??
• Credit Reports of 36 months
• Older data is removed
• However, defaults, write offs, Settlement data will be
present

Soft Enquiry: Self purchase of credit score

Hard Enquiry: by FIs/banks
Type of Hard enquiry can be for Secured (less
negative impact on CIBIL score) or Unsecured
Loan (more negative impact on CIBIL score)
Status

• Suit filed
• Wilful Default
• Suit filed & wilful default
• Suit filed & Written off
• Written off & wilful default
• Suit filed, Written off & wilful default
Status
Status

• Status-NIL
• DPD: Days past due (No. of days delay happened)
(in month and year)
1. 000-900: Not paid days
2. XXX: No info
3. STD: Standard
4. SUB: Substandard
5. DBT: Doubtful
6. LSS: Loss
7. SMA: Special mentioned account
 Irregular Account
• Account in default
• Present DPD> 30 days
(latest month)
• DPD 60 days for more
Regular Account than one occasion in
last 12 months
• SUB/DBT/LSS/SMA
Reason Codes EXPLANATION using CIBIL TransUnion Score 2.0
1. Not enough credit card debt experience
2. Length of time since most recent unsecured account delinquency is too short
3. Too many two-wheeler accounts
4. Too many business loans
5. Credit card account balances too high in proportion to credit limits
6. Maximum amount on mortgage loan is low
7. Total amount past due is too high
8. Not enough mortgage debt experience
9. Change of indebtedness on non-mortgage trades over the past 24 months
10. Insufficient improvement in delinquency status
11. Increase of indebtedness on non-mortgage trades over the past 24 months
12. Too many inquiries
13. Too many accounts with a balance
14. Length of time accounts have been established is too short
15. Not enough debt experience
16. Too many credit card accounts
17. Too many personal loan inquiries
18. Number of active trades with a balance too high
19. Change of indebtedness on credit cards over the past 24 months
20. Credit Card balance too high
21. Proportion of delinquent trades too high
 Exclusion Codes
CODE EXPLANATION
1 One or more trades with Suit Filed status in the past 24 months
2 One or more trades with Wilful Default status in the past 24 months
3 One or more trades with Suit Filed (Willful Default) status in the past 24 months
4 One or more trades Written Off in the past 24 months
5 One or more trades with Suit Filed and Written Off status in the past 24 months
6 One or more trades with Willful Default and Written Off status in the past 24 months
7 One or more trades with Suit Filed (Willful Default) and Written Off status in the past
24 months
8 No eligible trades for scoring: A trade is deemed ineligible if there is no reporting in
past 24 months OR is reported as „Authorized User‟
9 One or more trades with restructured debt in the past 24 months
10 One or more trades with settled debt in the past 24 months
Explanation of Exclusion Codes
With every score, we will return any exclusion codes that apply for that individual.
Please note that an individual could have a valid score – between 300 and 900 – and
still have an exclusion code if he/she has these factors – willful default, written off and
suit filed – on their credit report.