Lenders across the board rely on various metrics to assess an individual’s creditworthiness, one such metric that plays a huge role is the CIBIL Score.
The CIBIL score is nothing but a numeric representation of one’s creditworthiness. This score is a factor that the lenders use to qualify for a loan, the loan amount, and the applicable interest rate.
The Credit Report contains details on your credit history, your loans, repayment patterns, outstanding debts, and other financial information.
Whenever you apply for a loan, the lender checks your CIBIL Score and every inquiry you make will be assigned the ECN Number.
This number acts as a reference point for retrieving the individual’s CIBIL score, facilitating a seamless evaluation process.
In this article, we will discuss what is an ECN Number, How to get an ECN Number, the importance of the ECN Number, and much more.
Table of Contents
What is the ECN Number?
The ECN (Enquiry Control Number) is a unique identifier assigned to each credit inquiry made by lenders or financial institutions when accessing an individual’s credit report from credit bureaus like CIBIL.
It serves as a reference number for retrieving the individual’s credit information and CIBIL score, facilitating efficient credit evaluation processes for lenders.
How to Get an ECN Number?
You can follow these steps to get your ECN Number-
- ECN Number is only assigned when an inquiry has been made therefore, When you apply for a loan or credit card, the lender will request your credit report from credit bureaus like CIBIL
- After submitting the request, a unique ECN number for that specific credit inquiry will be generated
- The credit bureau uses the ECN number to retrieve your credit report and associated credit score from its database and the loan evaluation will be made
- During the evaluation, you can also know your ECN Number using which you can look at your credit report
Importance of ECN Number
The following are the importance of ECN Numbers-
- The ECN number streamlines the process for lenders to access an individual’s credit report and credit score from credit bureaus like CIBIL
- It serves as a unique identifier for each credit inquiry, enabling lenders to retrieve the necessary credit information efficiently
- Using the ECN number to access an individual’s credit report, lenders can quickly evaluate the applicant’s creditworthiness
- Each credit inquiry is associated with a specific ECN number, reducing the risk of errors or discrepancies in accessing credit information
FAQ
The ECN is a unique identifier assigned to each credit inquiry made by lenders. It is generated by credit bureaus like CIBIL in response to a credit inquiry initiated by a lender or financial institution.
The ECN number facilitates a streamlined process for lenders to access an individual’s credit report and credit score from credit bureaus. It serves as a unique identifier for each credit inquiry, enabling efficient retrieval of credit information and quicker decision-making.
No, individuals do not directly obtain an ECN number themselves. It is generated by the credit bureau in response to a credit inquiry initiated by a lender or financial institution.
Yes, the ECN number is used for various types of credit inquiries, including loan applications, credit card approvals, and other credit-related transactions initiated by lenders.
The validity of an ECN number typically depends on the credit bureau’s policies and the duration of the credit inquiry. After a credit inquiry is completed, the ECN number may remain valid for a certain period or until the credit report is updated with new information.
There are no direct fees associated with obtaining an ECN number for credit inquiries. However, lenders may incur fees for accessing credit information from credit bureaus, which could be included in the overall processing fee.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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