Now, you too can buy your credit score from CIBIL

Indian consumers can now access their CIBIL TransUnion Score to make informed borrowing decisions and avail speedier access to credit.

Just like your high school score the higher the score, greater are the chances of getting admission into your preferred college. So don't think that you have grown up and no score can alter your life. That's not true!

Your higher credit score can enhance your chances of getting credit as with the higher score credit institutions view you more favourably. However, every credit institution has its own benchmark of what constitutes a good credit score, though CIBIL does not recommend any cut-off score loan application eligibility.

Consumers can now purchase their CIBIL TransUnion Score directly from CIBIL. The CIBIL TransUnion Score, which plays a critical role in the loan approval process of credit institutions, is now available to consumers for Rs 450.

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Knowing their CIBIL TransUnion Score will enable consumers to better manage their credit history, avail speedier access to credit and derive benefits associated with good credit history. The Score is provided along with the CIBIL Credit Information Report (CIR).

Dwelling on the credit score, Arun Thukral, Managing Director, CIBIL informed, "The CIBIL TransUnion Score is a three-digit numeric summary (ranges from 300 to 900) of a consumer's credit history, compiled from information received from credit institutions that are members of CIBIL.

An individual's credit score provides a credit institution, like say a bank or home loan company, with an indication of the "probability of default" by the individual based on his/her credit history. This score helps credit institutions in estimating the likelihood of repayment, or default thereof, of loan based on the individual's past pattern of credit usage and loan repayment behaviour.

The closer the score is to 900, the more confidence the credit institution will have in the individual's ability to repay the loan and hence, the better the chances of the individual's application getting approved.

Speaking on the competition and multi-bureau scenario, Thukral said, "That is yet to test waters in India but in the US and other Western countries, this is the norm. Banks take all the three scores into account before granting credit. We too are not far from that scenario, India will see it happening soon."

He added, "Going down the line online availability of report will be a possibility but it has its own challenges as it is very difficult to prove identity of the person online. Nonetheless it will be a win-win situation for both customers and banks." 

However it is felt that fee charged for report and credit score is on a higher side, to this. Thukral said, "Considering the customers response and the amount of work involved in arriving at a score considering several parameters, the fee is not really high."

So how can consumers get this report?

Consumers can pay for availing their CIBIL TransUnion Score by following an online payment procedure or through a demand draft. They will have to submit their own identity proof and address proof documents along with the application form and online payment receipt or demand draft.

CIBIL TransUnion Score is India's first generic score and has become the most reliable indicator for prudent decision making for credit grantors.

Financial discipline coupled with prudent credit management and a good payment history will ensure that individuals enjoy all the benefits associated with having a good credit score.

Commenting on this development, Thukral stated, "We are very happy to provide this service directly to consumers as knowing their CIBIL TransUnion Score will help them assess their credit history better and enable them to 'see themselves as lenders do'. We believe that to be helpful in making the lending process more transparent, inculcating financial discipline and enhancing consumer awareness on credit information".

CIBIL is India's first credit information company which creates immense value for financial institutions by providing objective data and tools to help them manage risk, and devise appropriate lending strategies thus reducing cost and maximising portfolio profitability. CIBIL benefits both credit givers and consumers by collecting, analysing, and delivering information on credit histories of millions of borrowers.