You have the right to get credit report

You decide to take a loan and apply for it with your bank. Then you get a call from your bank that your loan application has been rejected. This can happen in case of credit card also. On asking bank gives the reason that you have a ‘bad credit history’.

In case you have, you have a right to ask the bank for the data based on which it took that decision.

According to law, if a bank refuses loan or credit card application on the basis of data provided by a credit bureau, it is supposed to give you a copy of those records.

On the other hand, before you are given the report, you might have to prove that you are the person whose credit report is required. Therefore you must carry an identity proof and address proof with you.

Remember, except you nobody else, not even your kith or kin, would be handed over your report. To obtain the credit report you have to apply for loan or a credit card otherwise you will not get it.

The process of credit report

At present the Credit Information Bureau (India) Pvt Ltd (Cibil) maintains records of your borrowing history with all the banks you have transacted with. These include details such as your permanent account number, the addresses you have notified banks about, number of credit cards you hold currently or have held in the past, loans you have taken, the period within which you have repaid or whether you have not repaid and for what period you have not repaid.

The Cibil provides report to all its 147 members, who in turn keep the database updated. As and when a person applies for a loan or credit card, the member banks would check with the Cibil database.

The system also keeps check of the details such as the last time any bank checked for your credit records. This indicates the last time you applied for a loan with any bank, as banks are not supposed to check the Cibil database unless they receive a loan or credit card application.

Banks are not allowed to check the records for marketing purposes. According to banking source each time they check the database, they are charged for it.

In case of individual whether they are being charged for the report, DNA Money carried out a random survey and found that some banks charge between Rs 50 and Rs 300 for furnishing credit reports.

Cibil is currently working on a system whereby you can get your credit report against a payment of Rs 100.

If case you find any inconsistency in the data maintained by Cibil on you, then you should inform the bank and take up your case with Cibil. However, note that you would require the credit report as a proof to even take up the case. So keep your copy safe.