Last updated on August 19th, 2017

One of my blogger friends recently applied for a credit card from a reputed bank in India. He has good balance in his saving account and is one among the premium customers of the bank. The bank obliviously accepted his request-did the address verification and forwarded an application to the head office. Having a credit card is important for a web based professional as he is required to buy web hosting, renew domains, etc. from time to time.

Later after a few weeks the lender sent him an SMS saying that the application has been rejected as his name is listed in CIBIL defaulters list. The guy is currently in a good financial position but his CIBIL history shows some old and pending loan payments reported by some other bank. CIBIL is a credit intelligence agency in India backed by private sector and public sector banks. They collect financial character of every person in the country from participating banks and assign a score. The score is calculated after understanding loans taken, payment pattern, credit card usage, spending style, etc. You may be rich but banks may not take your wealth as the primary aspect for approving a loan or credit card-but they use CIBIL score.

How to check my CIBIL Score report online:

CIBIL scores range from three hundred to nine hundred. A value near 900 makes you highly eligible for loans, credit cards and anything around 300 puts you in trouble -the defaulters list. Sometimes they provide  negative or zero values as CIR status. That means your information is not available with them or the current credit data is valid to calculate a suitable score. CIBIL now provides an online facility through which public can request their scores. You will need to  submit your personal, financial details and address proofs along with a single time payment of 450 RS to get the CIBIL credit report from the internet. CIBIL TransUnion Score and CIR are two types of reports available for purchase. The former is the complete one that includes details of credit history, dues, repayment style,  financial negligence, contact address and the CIBIL score or a person. After registering here, collect the receipt from mail, print and send it to the following address along with proofs specified in the online form. It will take a few more days to validate your data before they send the final CIBIL report in an easy to understand format.

CIBIL addressMy name is in CIBIL defaulters list-how to remove it:

So now if your CIBIL score is less than handsome value, banks will grade you as a defaulter and your credit requests will be denied. The only way to come out of this annoyance is to get the CIBIL report and find out black marks on your financial activity. If there are any dues pay the full amount. Then get a “no dues certificate” from concerned banks and request them to remove your name from the CIBIL list. You cannot plead CIBIL to pull your name from their database. They only update this data upon request from banks that have added it. So wait for three to six months for the reports to get updated. If this is not working you can contact the nearest banking Ombudsman with full details of your payment.

Tips to improve CIBIL credit score:

Never spend more than you can earn: This is the basic step for a better financial security. Don’t get more than one credit card as it might put you in debt and eventually to a low CIBIL credit score. Try you use your debit card in merchant locations- they too offer points for purchases.

Pay credit card bills and EMIs in time: Never opt for the minimum payment option in your credit card bill. It’s a trap, and you’ll  get into deep trouble with the months coming. Sometimes the banks will force you to settle credit card bills or loans at a lower rate. This will permanently affect your  credit score as it leads to a CIBIL reporting that might tabulate you as a late payer who depends on settlement to pay the bills. Instead of this ask them to convert the full amount into EMI and extend repayment time.

Save for future: Remember to keep backup cash in your savings bank account. This should be at least six times your monthly EMI. In case if you get through a financial burden the amount will help to continue paying debts and bills.