Credit Information Bureau (India) Limited (CIBIL) is a Credit Information Company (CIC) formed to provide a single source of credit history of various consumers across India. The member firms, mostly financial institution, are both provider and recipient of consumer's credit records. CIBIL collects and maintains records of an
individual‘s payments pertaining to loans and credit cards. These
records are submitted to CIBIL by banks and other lenders, on a monthly
basis. This information is then used to create Credit Information
Reports (CIR) and credit scores which are provided to lenders in order
to help evaluate and approve loan applications.
Interestingly, a three digit credit score(typically any score greater than 700) is often pivotal in the decision making process and most critical in acceptance or rejection of loan claim. Such being the importance of the score, regular and timely re-payment of any form of credit claimed from the member firms of the CIBIL is of paramount importance to consumers. The responsibility of consumers end there though, the banks or lenders are required to update the central database for each of their customers on a monthly basis.
Recently, I have been faced with an ignominy of loan rejection despite been most diligent in repayment. This made me think about the accuracy of information maintained and accountability of an independent firm maintaining the stale data, which apparently is information that most banks rely upon.
To prevent selling the product to consumers who are more likely to default is underlying principle, but rejection to genuine consumer on account of incorrect poor score means lost business to banks too. Hence it is in the interest of banks to maintain the accuracy of data.
While I am yet to retort completely and reach to a tenable solution. I shall update this blog about the process I followed, as on date I am aware that any knowledge of incorrect information can be emailed to info@cibil.com
Interestingly, a three digit credit score(typically any score greater than 700) is often pivotal in the decision making process and most critical in acceptance or rejection of loan claim. Such being the importance of the score, regular and timely re-payment of any form of credit claimed from the member firms of the CIBIL is of paramount importance to consumers. The responsibility of consumers end there though, the banks or lenders are required to update the central database for each of their customers on a monthly basis.
Recently, I have been faced with an ignominy of loan rejection despite been most diligent in repayment. This made me think about the accuracy of information maintained and accountability of an independent firm maintaining the stale data, which apparently is information that most banks rely upon.
To prevent selling the product to consumers who are more likely to default is underlying principle, but rejection to genuine consumer on account of incorrect poor score means lost business to banks too. Hence it is in the interest of banks to maintain the accuracy of data.
While I am yet to retort completely and reach to a tenable solution. I shall update this blog about the process I followed, as on date I am aware that any knowledge of incorrect information can be emailed to info@cibil.com
3 comments:
My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.
My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.
I had no idea my credit was bad. The guys at Credit Sudhaar analysed my report. The process took some time but my credit was restored, enhanced and protected. I have no reason for complaints.
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