Banks and financial institutions closely evaluate the creditworthiness of loan applicants based on the information detailed in their credit reports. Lenders also use the information in credit reports to set the interest rates on loans. One of the easiest ways of checking credit eligibility and credit standing is by looking at your credit report and credit score regularly. This can help in identifying inaccurate information, which could potentially bring down your credit score.

Here is a checklist of some of the important factors that you should closely review while going through your credit report.

  1. Credit accounts

Every active and recently closed credit account gets covered under the credit accounts section of a credit report. Banks and lenders carefully look through this information while evaluating your creditworthiness. Therefore, it is important to ensure that your loan and credit card account details are up to date and have been reported accurately in the credit report. Any presence of incorrect information or an error can damage your credit score and have a severe impact on your loan or credit card eligibility.

  1. Repayment history

This section covers your loan and credit card repayment history. It also contains details of the months during which the repayments have been made and whether they have been made by the due date. It also enlists any missed or delayed repayments. The information contained in this section is used by banks and lenders to assess your credit repayment behaviour. Hence, you must look through and ensure that the repayment history is accurately detailed and updated with the latest information in your credit report.

  1. Personal details

This section covers your personal information, including name, PAN, mobile number, communication information, etc. Since lenders check your credit report while evaluating a loan or credit card application, any incorrect or absence of information in your credit report versus what is mentioned in your credit application can improve or damage your chances of easily securing a loan or credit card.

  1. Credit utilization ratio (CUR)

This is one of the most important parameters considered by credit bureaus while calculating your credit score. The credit utilisation ratio reflects the total credit limit that has been utilized by you. Banks prefer to lend to borrowers who have a low credit utilization ratio within 30%. Those who tend to frequently surpass this mark can request their credit card issuer to increase their credit limit or they can apply for a fresh credit card. This helps in containing your credit utilisation ratio as long as you do not further increase your credit card spending. 

  1. Credit report enquiries

Under this section, any lender-initiated enquiries of your credit report are covered. This section generally contains the lender’s name, date of application, type of credit applied for, and other details depending on the credit bureau.

Every time you apply for a loan or credit card, banks and lenders check your credit report that is generated by the credit bureaus. Such lender-initiated enquiries are termed as 'hard enquiries' and each gets listed in your credit report. This can negatively impact your credit score and reduce by a few points. Therefore, making multiple loans or credit card applications with different lenders or credit card issuers within a short duration can result in a significant dip in your credit score.

Instead of making many credit applications within a short span, you can reach out to online financial marketplaces to compare various credit options available for your credit score. Credit report requests by such online platforms are termed soft enquiries and do not severely impact your credit score.

Will there be a credit report error?

A credit report can be inaccurate or have incomplete information. This may require rectification by the credit bureau or lender. It is therefore important to regularly check your credit report with a minimum frequency of once in three months. You can also avail of one free credit report per year from each of the four credit bureaus in India. You can also access basic credit report information for free at


Credit reports and credit scores offer lenders a deep insight into a borrower’s credit behaviour and overall history. This is slowly gaining significance among all lenders and credit reports are being first sought before approving a loan or credit card. Since a credit report makes the first step towards availing of an easy approval or loan or credit card, you must keep a tab on the details contained in your credit report. With the help of the factors listed above, you can easily focus on the important aspects of a credit report to be better prepared before making a credit application.

FAQs factors to note while reviewing your Credit Report

  1. Does a CIBIL™ score change every month?

Different credit institutions across India submit credit information every 30-45 days to CIBIL™. If there is information contained in such submissions that significantly changes the credit dynamics of a borrower, the score may be updated accordingly.

  1. Is 700 a good CIBIL score?

Yes, a credit score of 700 or above is considered good by lenders and allows borrowers to have easy access to loans and credit cards.

  1. How can I remove my name from the CIBIL™ defaulter list?

If you previously had an outstanding loan but have managed to clear all your debt now, you can reach out to the credit bureau to take your name off the defaulter list. In most cases where the entire due amount is paid upfront, the lender may agree to take the borrower’s name off the defaulter list.

  1. How can I remove a wrong entry in CIBIL?

To remove a wrong entry or incorrect details in the CIBIL™ report, you must reach out to the credit bureau requesting the same. This can be done online using the bureau’s website or offline through the agency’s customer care phone number.

  1. Can CIBIL™ defaulter get a home loan?

CIBIL™ defaulters can get a home loan. However, this can be a difficult process as not many banks may want to lend to defaulters. Also, if a bank agrees to lend, the interest rate may be significantly high.

  1. How can I improve my CIBIL score?

To improve your CIBIL™ score, you can begin making timely loan and credit card repayments. It is also important to keep a low credit utilisation ratio to improve credit scores. 

  1. Does pre-closure of loan affect CIBIL score?

Loan pre-closures generally don't impact your credit score. Part prepayments are applicable only if you pay in a lump sum. Banks usually provide a one-year lock-in period during which a loan account cannot be closed.