BackGive credit score free to individuals once a year: RBI
The credit score works as a first impression for the lenderhigher the score, better the chances of the loan being approved
Premium
Mumbai: The Reserve Bank of India (RBI) on Thursday directed credit information companies to provide one free full credit report, including score, once in a year to individuals whose credit history is available with them.
The credit report plays an important role in the loan application process. The score works as a first impression for the lender—higher the score, better the chances of the loan being approved.
In a notification, the RBI said that given the importance of the credit report in an individual’s financial matters, the person is entitled to have a copy of the report upon request.
“Further, the objective of providing the free credit report would not be fully met unless this report includes details that figure in the full credit report that is accessed by the credit institutions while considering the request for fresh credit facilities," it said.
The report should also provide an opportunity to the borrower to have the errors, if any, in her/his credit history rectified, RBI said.
“Taking into account these objectives, it has been decided... to direct Credit Information Companies to provide access in electronic format, upon request and after due authentication of the requester, to one free full credit report (FFCR) including credit score, once in a year (January- December), to individuals whose credit history is available with the CIC," it said.
This report must show the latest position of the credit institutions’ exposure to the individual as per records available with the CIC. The contents of the FFCR should be the same as appearing in the most detailed version of the reports on the individual provided to credit institutions, including the credit score.
A committee set up by RBI had recommended that each customer of a credit institution should be provided one base level consumer credit information report free of cost every year by each CIC.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
