May 13, 2016

What Accounts Reflect in Your CIBIL Report?

We all know the importance of CIBIL Report of a credit report. However, we fail to understand what type of our transactions or accounts actually reflect in this report. Let us try to understand this aspect.

Mr. Arun Gupta, was a kind and noble man. Like any dotting parent he had made several plans for his daughter’s marriage. His dreams were shattered the day his loan application was rejected. It broke his heart when on the same day he found that his younger brother and another colleague had got a loan from the same bank. What was it that was hurting his credit aspirations? Something on his report may be.CIBIL Report

What are the times when you turn to credit? Buying a home or a car, paying for higher education, marriage, etc. A hoard of such reasons can be listed. Your pockets become deeper once you avail any credit facility. It is obvious that credit helps you achieve your financial goals. But how would you feel if you were not able to meet these goals? Especially if you found out that people around you find no difficulty in seeking loans? Let us tell you. You will feel horrible and it is natural to feel so. Let that feeling pass and gear yourself up for course correction.

Statistically speaking, almost 79% of loanees are approved a loan if and only if their score is 750 or more. But what is noteworthy is that your score is just one aspect of your credit history. There is more in depth information recorded in your CIBIL report and this is the place where bankers look for a detailed background check. Here is a list of some accounts that reflect in your report and can distort a lender’s perception of you.

# Different types of credit accounts: You may have a lot of money lying in your savings account, current account & fixed deposits but it will not show on your CIBIL report to impress your lenders. However, inspite of maintaining high balances in your bank accounts if you have constantly defaulted on your loan and credit card payments then it will certainly shed a poor light on your financial character. Information on:

  1. Loan accounts – All EMI based credit accounts are recorded in the report. You may have sought loan for education or a small personal loan, it will reflect in the credit report along with its monthly payment cycle.
  2. Credit Cards – These are also short credit advances where the limit is restored every time a repayment is done. It is a revolving form of credit. Even if you have drawn any cash from this credit card, it will show on the report.
  3. Secured and Unsecured Debt – Loans like car loans are secured debt and those like education loan are unsecured debt as they do not have a collateral backing them. For example, if you take loan against gold then the value of ornaments kept as collateral will also appear on the report.

The report also captures details like name of the lender, type of account, account number, ownership, date the account was opened and closed, account status along with accurate information amount due and paid.

# Settled & Written Off Accounts: Accounts that are settled for an amount less than what was due are shown as “settled” under the status column. Accounts that remain unpaid throughout the tenure are shown as “written off” after a period of almost 24 months. 

 

The report is supposed to reflect your credit history. Such accounts have the potential to shatter your credit aspirations. You cannot have them removed from your credit history unless your lender is willing to co-operate and the likelihood of that happening is negligible. However, if it erroneously shows on your report, you can certainly raise a CIBIL dispute to have it corrected.

# Open and Closed accounts: Open accounts are those that are still running or in other words, those credit facilities that are currently in use. These accounts have a current repayment cycle and are still exercising a burden on your pocket. 

Closed accounts are those that were in use at one point of time and now have been fully repaid. A “closed” account status favours your report and helps improve CIBIL score immensely. This is so because, it shows that you are a prudent user of credit, have repaid your lenders in the past and fully comprehend the business of credit.

# Jointly held loan accounts: It is not necessary that you have directly applied for a credit facility. It is possible that you are a co-applicant for a loan but are not directly responsible for making payments on this account. Yet, all such accounts reflect in your report too. This is because if the primary loanee defaults on repayments then the lender will turn to you for recovery and therefore it does feature as a risk you are exposed to.

# Accounts where you are a guarantor: You may have out of good faith ended up becoming a mere guarantor on a loan account. But these accounts feature in your credit report too. By becoming a guarantor you have promised the bank that you will make good all the losses a lender incurs owing to non-repayment of his dues. Thus, though you may not be using the credit facility at all, but since you have a risk of bearing the payments if not repaid, it adds to your debt burden.

# “Authorised User”: This shows the credit card where you are an add-on card user. Although you are not the primary card holder and are not directly responsible for the payments for charges on this card but in case of a default, you are required to make the payment good.

In short

All types of credit accounts, accounts that were previously used, whether settled or written off by the bank, currently in use loan accounts & credit cards and also accounts where you are either a co-applicant or a guarantor, details of all such accounts that project a debt burden on you, reflect in your report and are used for cibil score calculation. You must make utmost efforts to make sure that you have a clean report and one that is capable of impressing a lender.

Note-This is a guest post by Mr.Arun Ramamurthy, Director, Credit Sudhaar & author of Unlock the Power of Your Credit Score : India’s first book on Credit Scores’.

This is purely for knowledge sharing purpose. BasuNivesh in any way not associated Credit Sudhar or with Author of this post. Also, BasuNivesh not received any money to publish this post.

Our other posts related to credit score-

35 Comments

  1. Hi i had taken an Education loan of amount 3.6 Lakhs and have paid nearly 2 lakhs. I have been called for a settlement now by SBI to close account by paying another 4 lakhs for which i have agreed as well.

    My father is my guarantor and note that my PAN is not yet submitted or linked to this account due to which this loan is not listed in my cibil yet. I was told that to avoid getting SETTLED status in my cibil, i have to pay another 6lakhs. Is there anyway my dad can close this loan by NOT providing my PAN and by closing the account by giving the Settled amount of 4 lakhs there by saving me from this BAD credit mark in my cibil? Please advise.

    Reply
    • Dear Vishnu,
      If your PAN is not provided, then no need to worry.

      Reply
  2. Hi. I will be applying for an education loan soon.
    However my CIBIL score is -1. My report shows that I am an ‘authorized user’ for a credit card account 15 years back (I was a minor back then) and the particulars of overdue balances show in my report.
    Am I going to be rejected if I apply for a loan with this score?

    Reply
  3. Whenever we open a new bank account, is that also reported in CBIL by all the banks?

    Reply
  4. Hi,
    I’m Santhi.I have applied for a loan in a private bank. Those people said that I got loan in the year 2012 and it is not paid still. But I dint get any loan. They said that the one who name Santhi,their account is reflecting in my account. So to get a loan you need to submit a proof. But I asked in my bank,they are saying that we are not responsible for this. You have to raise a query in CIBIL. I’m in a greatest confusion. What I have to do now? Kindly reply.

    Reply
    • Dear Santhi,
      Just with mere name match, they can’t claim that you have taken the loan. Let them prove that with relating documents like PAN or other proofs.

      Reply
  5. Hi IAM a co applicant of house loan. I have checked my cbil score in pisabazar, it is not showing under loan accounts,may i know the reason

    Reply
    • Dear Rahul,
      Why not cross check the same directly with CIBIL?

      Reply
  6. Hi, I was working with HDFC Bank and had left the organisation in 2004. During my tenure with the bank, I had taken staff advance or Personal Loan from the bank of Rs 65,000/-. The said loan was properly getting paid during my employment, however the repayment cheque sent by me to HR after leaving the bank was never encashed. Bank has neither recalled the loan nor settled my dues. Bank has gone ahead and suddenly reported this in CIBIL in 2013 and went on putting DPDs without a single communication of recall. No one is aware which bank account they were trying to debit. Bank has gone ahead and carried out my full and final settlement of staff dues in Oct 2018 under which the said staff advance was fully paid by me. This has happened after my escalation to their Nodal Officer and RBI’s Banking Ombudsman. However, RBI has disposed off the said dispute saying that they can’t resolve this as the same are employment related dues. My question here is whether such unsettled staff dues be reported to CIBIL, since loans and advances which are under RBI’s purview can only be reported in CIBIL as per my understanding. Kindly guide.

    Reply
    • Dear Ram,
      I think they are wrong in reporting such internal advances (where there is no lender and customer relation exist). Hence, you have valid reasons and points to point against them.

      Reply
  7. Hi, I have PLCC | Personal Loan on Credit Card and they charged GST on interest and the loan is not reflect in my CIBIL. Please tell me is it right to pay GST on interest charges against my PLCC. My current CIBIL score is 846 and what is total account & how it’s affect our CIBIL score.

    Reply
  8. Sir ,
    My CIBIL Score is showing NH and My Education loan history is not showing in Report , Which i Was cleared in September 2016

    What should I do ???

    Reply
  9. Hi,

    i have got my CIBIL report and as per that i have CIBIL score of 744, however one account showing “written off”( my educational loan)
    what are the chances of getting an approval for my Home Loan?

    Reply
    • Akansh-It is hard to say. But a score above 750 is considered as good score.

      Reply
  10. What are the steps to follow to increase cibil score?

    Reply
  11. Hi Basavaraj,

    My Cibil Score is 756,But i have made Settlement for Credit Card Payment.

    Can i apply the loans ?

    How many years CIBIL will maintain our details?

    Thanks
    Pavan

    Reply
    • Pavan-Yes, you can update. The details of your past will be forever.

      Reply
  12. Hi,

    I have one query, 10 Day’s back I have applied CC from ICICI Bank. But card application has been decline due to low CIBIL score. My current Cibil Score is 604. In my Cibil report one account showing “written off and account sold” what is the mining of that? Also can I get CC against fixed deposit? Or that also going to decline… Please suggest…

    Reply
    • Kishore-Do you have any prior loans which were not cleared by you and they were written off?

      Reply
      • Yes.. But that bank sold out his business in india.. We don’t haven’t any latest update for contact..

        Reply
          • Okay.. But I can apply CC against FD ? How many chances to Approve CC against FD ?

            Reply
              • Thank You..

                Reply
  13. Hi,

    Its is so unfair to customers, the credit card/ banks should provide the credit score of the customers every time they send the statements. It should the right and not an option.

    Just a suggestion..

    Reply
    • Saitushar-Credit Report handling is not under banks. They only transfer the data to credit scoring companies.

      Reply
  14. But my head office is at Delhi and I work at hyd . Home come employer do that process and how can I apply for my pf ….

    Reply
  15. hi..

    Nice article.
    How to know CIBIL score for an individual

    thankyou.

    Reply

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