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Consumer Credit Report

A Consumer Credit Score in India ranges from 300 to 900, indicating an individual's creditworthiness to lenders, with scores above 750 generally considered good. The document explains various credit score categories, anomalies in credit reports, and terms like 'Settled', 'Written Off', and 'Days Past Due' (DPD), which impact credit scores and loan eligibility. Understanding these classifications and statuses is crucial for consumers to manage their credit effectively.

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15 views3 pages

Consumer Credit Report

A Consumer Credit Score in India ranges from 300 to 900, indicating an individual's creditworthiness to lenders, with scores above 750 generally considered good. The document explains various credit score categories, anomalies in credit reports, and terms like 'Settled', 'Written Off', and 'Days Past Due' (DPD), which impact credit scores and loan eligibility. Understanding these classifications and statuses is crucial for consumers to manage their credit effectively.

Uploaded by

navayugaca
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A Consumer Credit Score is a 3 Digit number that indicates a consumer’s

creditworthiness to lenders, such as banks and NBFCs. It reflects how well


one has managed credit in the past, In simple terms, it tells lenders the
level of risk involved in lending to an individual and their likelihood of
repaying the loan on time.

The credit score companies in India compile credit scores ranging from
300 to 900. A score above 750 is generally considered good by lenders.
The higher the score, the better the chances of getting approved for new
credit. Different credit-scoring models and score ranges exist, but they
typically fall into the following categories:

 851-900 (Excellent): – Indicates a borrower with no payment


defaults, considered low-risk, 751-850 (Good): Favourable score
showing strong credit history with timely payments, 651-750
(Average): – Represents a balanced credit history with fair credit
management, 501-650 (Poor): – Indicates a higher risk level,
potentially due to missed payments or high credit utilisation. 300-
500 (Very poor): Reflects a bad credit history with defaults and
difficulties in obtaining credit.

Understanding Anomalies Reported in Cibil Report

 ‘Settled’ accounts mean the lender offered a settlement partial


payment to close the outstanding loan account by waiving the
accumulated interest and charges in the total loan outstanding. This
also means a history of pending dues for a long period and is
frowned upon by creditors and lenders alike.

 Written off ‘Written Off’ loans are those where the credit card or
loan amount outstanding amounts stay in the ‘un-cleared’ and ‘no-
payments’ lists for a period exceeding 6 months or 180 days. In
such circumstances, the bank or lender places the account in the
“written off” list and reports this to CIBIL. Thus, non-repayment of
bills, a settled or written off account status affects your credit
report, score and loan eligibility adversely.

 Account Purchased :

 Restructured Loan:

 Suit Filled:

 Willful Default :
 DPD full form in banking: The credit card DPD means the ‘Days
past the Due Date’ in any given month when making payments on
your EMIs and card bills. The ideal DPD full form is ‘STD’ or ‘000’
here.

The Classification of an asset’s payments is made by certain terms


discussed below -

1. STD in CIBIL or Standard Payment Account indicates the


parameter for the bill or EMI payments that have been made within
the provided 90 repayment days specified.

2. CIBIL SMA meaning is a reporting account created when a


Standard Account repayment show a tendency to deteriorate and
move to the Sub-Standard account of the SMA meaning in
CIBIL classification. Thus the SMA full form in CIBIL is a Special
Mention Account. Types of SMA's :

SMA - :Indicates non-financial stress factors affecting an asset.

SMA - 0: Accounts showing initial signs of stress where neither


principal nor interest payments are overdue by more than 30
days.

SMA - 1: Accounts with principal or interest payments overdue by


31 to 60 days.

SMA - 2: Accounts with principal or interest payments overdue by


61 to 90 days

3. SUB or Sub-Standard Account is a reclassified sub-standard


account or SUB account when its payments are made consistently
after the 90 repayment days specified.

4. DBT or Doubtful Accounts are those SUB accounts that remain as


SUB accounts for a period exceeding 12 months.

5. LSS(Lender Settled Status) meaning in CIBIL is a loan or credit


card account in which the outstanding amount is reported as
uncollectible and an identified loss or (LSS) Loss Account.

6. STD xxx or DPD “XXX” means that your account information in


that particular month is pending the bank’s report to CIBIL. The DPD
followed by xxx in CIBIL report or any number like DPD 025 means
the xxx number is 025 and that the month’s payment is made 25
days after the provided 90 days period.

7. The DPD ‘000’ status means there are no due days availed, and the
payment is on time. Hence this score is considered ideal.

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