When was the last time you fetched your Transunion CIBIL score? For what did you review it for? And through which medium did you do your CIBIL score check? Your credit score is nothing but a measurement of your creditworthiness. It reveals to the lenders your credit management behavior. Indians now are becoming more and more aware of such financial instruments that can endow them with the best loans in the market. It ranges anywhere from 300 and 900, with 750 being considered a preferable credit score to have. A credit score of 750 & above can give you the best loans with a lower rate of interest and repayment terms.
Now the question here is, ‘Who can access your credit score and credit report?
Your credit report gets generally fetched by the lenders whenever you apply for any credit option, may it be a credit card or loan. Based on your credit report, your application for credit is processed. Such checks are known as ‘hard checks’ and impact your score slightly. Individuals can even access their own Transunion CIBIL score from time to time for keeping themselves thoroughly updated about their credit-linked health. These credit report enquiries are known as soft enquiries, which do not affect their score in any way.
Here is a list of those who can simply access your credit report and credit score and the impact of the same on your credit score.
One of the most common instances of conducting a CIBIL score check is when you apply for a credit card, personal loan, or any other form of credit. Your credit report assists them to determine your repayment potential and credibility, and that can disburse your credit accordingly.
In India, many of the loans come with a risk premium that usually is added to your base lending rate to determine the effective interest rate. The risk ratio gets derived based on the credit score. Thus, having a healthy credit score is a crucial part of your loan procedure. Thus, having a good credit score is a crucial part of your loan procedure.
Your current lenders
In current loans and credit cards, your lender may pull up your credit report timely. It assists them in determining whether to continue with the current loan terms or modify the same on your credit score. An improved credit score can make them lower the rate of interest. However, a negative change can impact your rate of interest negatively as well. Thus, just because you availed of the loan already, you cannot avoid your credit score and allow it to deteriorate. You must constantly strive at maintaining the health of your credit score.
While it is not prevalent widely in India, the insurance companies are slowly taking up the credit scores model to calculate your life insurance premium or vehicle insurance. Insurance costs have enhanced manifold and have become a considerable financial liability for each policyholder. Thus, insurance companies look to ensure that the individual who is being insured can afford to make timely premium payments. For this, they usually resort to reviewing your Transunion CIBIL score to know your repayment capacity and credibility.
Credit score allows employers to make the hiring decision. In the present-day competitive world, with thousands and thousands of applicants fit for the same role, your credit report might throw some insights into your behaviour and attitude toward your employer. This even allows them to figure out if the applicant has any kind of bankruptcy filings, any loan default charges etc., against them. But do not worry; they cannot see your credit report with zero permission. Thus, they would go through your report but not your score.
Besides the above, you can also check your own credit score periodically. Now, when you check your score, it is known as a soft check enquiry, which does not have any kind of negative impact on your score. It assists you to keep a check on your debts and efficiently managing it. Also, you can detect any misinformation or error in your report and, in case of error, approach the concerned lender or bureau for rectification.
There basically are 4 important credit bureaus in India. They are CIBIL, Experian, Equifax and CRIF High Mark. Individuals get entitled to 1 free credit report per credit agency per year. Besides availing of the credit report from the bureaus, you can also avail of credit reports from a digital platform. Such platforms offer free credit scores with a thorough credit analysis report once every year to help you in making an informed decision & to know the best credit solution for your needs.
Whenever you evaluate a credit report, it gets recorded on your credit history. Your credit report involves every credit or loan option that you availed and thorough repayment history of the same. Such reports of your credit behaviour allow the lender and creditor to judge your potential to repay and your past behaviour with credit. In case you see any discrepancy, you can instantly get clarification from the credit bureau and concerned lender to get it corrected or removed from your report.
Frequently asked questions (FAQs)
If you avail of the credit report, 1 each per year from each bureau, then it is free. However, if you avail more than 1 report from any of the bureaus, then it is chargeable. Alternatively, availing of 1 credit report per month from digital platforms is free, but availing of more than 1 report per month may be chargeable.
You can avail of credit reports from any of the four credit bureaus, namely CRIF High Mark, Experian, Equifax and CIBIL. You are provided 1 free credit report along with the credit score once every year. You also can avail of free credit reports per month from any of the digital platforms.
Yes, potential lenders, insurance companies, current lenders and at times also your employers can view your credit score.