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Keep Track of Your Financial Health with A Free CIBIL Report Every Year -
Keep Track of Your Financial Health with A Free CIBIL Report Every Year
Rajiv Raj | Published: 18 Oct, 2016  | Source :

Keep Track of Your Financial Health with A Free CIBIL Report Every Year

A credit report is an important tool that lets you keep the track of your credit as well as payment history. It also contains an important piece of information - your credit score - which determines whether you will be able to open new credit lines. It also may, to a certain extent, determine whether you will be able to get your dream job. Whether you are planning to take loan for a new car, a new home or higher education, your credit score will be the deciding factor. Although it plays an important role, very few people are actually aware about their credit scores.

Recently, Raghuram Rajan, the Governor of Reserve Bank of India (RBI) has announced that soon every individual will be entitled to a free credit report from CIBIL every year. This step has taken in order to spread credit awareness among people. Here is how the free credit report can help you track your financial health.

Encourage borrowers to make timely payments

There are many benefits of the once a year free credit report. It will encourage people to keep their credit history clean and credit utilization ratio low. With a free credit report every year, you will be able to check your credit score and understand about your current financial health.

Check for any discrepancies in the report

Apart from that you can also check for any discrepancies in your accounts that may be affecting your credit score. Oftentimes people are not aware of these discrepancies in their credit reports until they face a situation when their loan application is rejected by the lender due to bad credit score. Mr. Shyam Banerjee has made it a point make all his payments on time. He used his credit cards smartly to ensure that there are no dues and accrued interest charges. When he found his dream home at one of the posh location of the city, he immediately went ahead to apply for the home loan from the bank. However, his application was rejected on the grounds that his credit score is low. On ordering his credit report, he found out that there is an unknown credit card under his name which was negatively affecting his credit score. With the free credit report, you can monitor your CIBIL report on a yearly basis to ensure that there are no errors that can plummet your credit score.

Suspicious activity or identity theft

The free credit report will also help you find out about any credit card frauds or identity theft. If you find that there are new accounts opened recently under your name, or there is an address in your credit report, where you have never lived, you may be a victim of identity theft. These are the red flags which can tell you whether someone is using your name to get credit. Mr Shyam immediately reported the new credit card account to CIBIL. On further inquiry it was revealed that Mr Shyam was indeed a victim of identity theft.

About Rajiv Raj

Rajiv Raj is a Co-founder and Director at He is a credit expert with over 10 years’ experience in the personal finance and consumer banking industry and another 7 years in the credit bureau sector. He was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL) in 2005 and moved on to help UK based Experian Group to set up Experian Credit Information Company of India Private Limited (ECICI) in 2008. He can be contacted at

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. The author does not accept any liability whatsoever arising from the use of any of the above contents.