- September 24, 2021
- Posted by: admin
- Category: Business plans
A credit report is a report which provides detailed information about your credit history and how you have paid your dues in the past. A credit report is the most important document necessary to provide while availing of a loan. If the credit score in the report is high it is relatively easier to avail loans from BANKs & NBFCs. If low, multiple steps have to be taken to increase the credit score so that the loan availing process is smooth and hustle-free
Few companies provide credit reports to BANKs & NBFCs. Some of them are Experian, Equifax, and Transunion CIBIL. Though all these companies give out similar credit reports there are few differences between them. CIBIL is the most widely used credit report in India. CIBIL is connected to 99.9% of the banks and they can provide credit reports to all BANKs and NBFCs.
WHAT DOES A CREDIT REPORT INCLUDE?
A credit report includes a variety of information which tells about all the crucial details related to financial aspects. They are:
Personal Details: A credit report includes personal details like the full name as per records, Age, Date of birth, Social security number, Residence address (past and current), etc.
Loan Account Details: A credit report also includes accounting details like Credit Accounts, Credit card history, past payment dues, etc.
Public Records like Bankruptcies, foreclosures, Civil suits & Judgements, etc.
Enquiries: The credit report also contains information about companies or individuals who have accessed your credit report
WHAT DOES A CREDIT REPORT NOT INCLUDE?
Information like marital details, Income details, past education details won’t be included in the credit report as they are not relevant in the process of availing loans between the lender and the borrower.
WHO CAN ACCESS A CREDIT REPORT?
The owner of the credit report: The person on whom the credit report is based can access the credit report through the portal at any given point in time. However, he or she cannot make any alterations to it.
Lenders from BANKs or NBFCs: Any lender be it a BANKs or an NBFC can get access to a credit report. This is a part of the verification check the lender does before sanctioning the loan to the borrower. This process increases the trust and confidence in the borrower by the lender
One can analyse your financial discipline by your credit report. Hence it is very important to maintain a good credit report to show good financial stability & Credibility.