Free credit information report every year – RBI

credit information report

Good News! Now you can get Credit Information Report every year absolutely free. Reserve Bank of India (RBI) has instructed all credit information companies to provide a full credit report to individual free of cost.

Currently, you need to pay around Rs.500 in order to get your CIBIL score and report. From 1st January 2017, you can get this information free. CIBIL score and credit report plays an important role while getting loan or credit card from the bank.

What is Credit Score?

A Credit Score or CIBIL Score is a three digit numeric number which shows a summary of your credit history. The value of your credit score ranges between 300 -900. Higher the credit score, the higher are chances of your loan application getting approved.

What is Credit Information Report?

The credit information report (CIR) is month by month record of your loan related EMI and/ or credit card payments. This report includes following information.

  • How many and what types of loans are taken by you till date.
  • Amount sanctioned by bank and outstanding amount.
  • Detail of loans where you stood as a guarantor.
  • Your loan repayment history, delay, and default.
  • Inquiries about your CIR made by various banks.

Free Credit Information Report

Credit report and credit score show your creditworthiness and you have rights to know about your creditworthiness. So RBI has issued a notification about Free Annual Credit Report to Individuals dated 1st September, 2016. The key announcements made in the notification are given below.

  • Credit Report plays an important role while getting a loan. You are entitled to get a copy of your credit report on request.
  • It should be full credit report mentioning all the details otherwise it will not serve any purpose.
  • This full report will enable you to find out and rectify errors from your credit history.

Accordingly, RBI has directed all credit information companies to

  • Provide access to CIR and credit score in electronic format after authentication.
  • This credit report needs to be provided once in year January to December.
  • No money will be charged for this request.
  • This report will be provided only if credit history of individual is available with CIC.
  • Latest position and loans exposure of individual should be included in the report.

In addition to above all credit information companies should put a system in place to provide access to full credit information report to an individual upon request. Credit information companies should publish the procedure on the website to access this report.

The credit information companies shortlisted for this purpose are –

  • Credit Information Bureau (India) Ltd. (CIBIL)
  • Experian Credit Information Co. of India Pvt. Ltd.
  • Equifax Credit Information Services Pvt. Ltd.
  • CRIF High Mark Credit Information Services

If your credit score is low less than 500 it is called as bad score and it will be very difficult to get finance from the market. Don’t worry it is possible to improve your credit score.

How you can improve your Credit Score?

  • Always pay your dues on time.
  • Never default on loan
  • Get Credit card if you don’t have one
  • Use your card lightly
  • Check your limits
  • Maintain a healthy mix of credit such as home loan, auto loan, personal loan

Hope information given above will help you.

Did you ever check your credit report before?

Do you think free credit report will help you?

Do share your views in the comment section.

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 700+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

Subscribe to Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Leave a Reply

Your email address will not be published. Required fields are marked *