A credit report is a history of your credit behavior and contains detailed information on all your loan and credit-related transactions with banks, credit card companies, and other lenders.
Key Highlights of A Credit Report
- Your credit report contains important financial information that helps lenders understand your repayment capacity and also your level of credit risk.
- Your credit report contains details about the types of credit accounts (Credit cards and loans) you have had, bankruptcies, and late payments if any.
- It contains your entire payment history and certain other information such as your credit limits, etc.
- Most importantly, it consists of the credit score that is referred to by the lenders to check your creditworthiness when you apply for a loan.
- The credit report is issued by one of the four credit bureaus, or credit rating agencies operational in India - TransUnion CIBIL™, Equifax, Experian, and CRIF High Mark.
Credit Report From Credit Mantri
At CreditMantri, we provide 12 credit reports per year for a nominal fee of just Rs. 499 annually.
It is very easy to download your credit report from CreditMantri by following the steps listed below:
- Visit the CreditMantri website
- Click the ‘Free Credit Score’ option
- Click ‘Credit Health Report’
- Click ‘Get Started’
- Enter your mobile number to get the OTP for authentication
- Enter details like your PAN number and date of birth
- You will get your credit score and credit health analysis for free
- You can also pay the fee to get detailed and accurate credit reports dispatched directly to your inbox, 12 times a year.
What Details Are Included in The Credit Report?
Although every credit bureau has its own way of creating a credit report, the following are the things that get included in a credit report
- Percentage of timely payments done: If you have missed payments, the lender reports it to the credit bureau. The bureau then makes a note of it on your report. So, if there is a consistent pattern of timely payments on your credit report, then potential lenders approve your loan application easily.
- Personal Information: This includes the name or names that you may have used in relation to your financial accounts, your date of birth, and addresses (Including email address)
- Debt information: The credit report also lists accounts that are overdue and have been submitted by a lender to an external agency for payment collection.
- Credit Information: It includes details about previous and current credit accounts such as loans, mortgages, credit cards, account balances, payment history, and the duration of the account being active and open.
- Public Information: Any foreclosures, bankruptcies, charges, or lawsuits regarding the same will come down under this section.
- Credit score: The credit report will contain details about your credit score. The credit score is a number between 300 to 900 summarizing the credit information. Lenders determine whether to sanction loans and credit cards based on the credit score. The higher the score, the chances for approval of the loan are more.
- Enquiry information: When lenders or credit card companies make hard inquiries on your credit history, that gets recorded in your credit report.
Why Is The Credit Report Important?
The credit report highlights a numerical value called the credit score. This is looked into by lenders before they sanction a loan or credit card. The higher the credit score, the higher the chances for loan approval.
The reasons for a low credit score are:
- History of defaults on loans
- Overdue payments on credit cards
- A high debt-to-income ratio
The reasons for a high credit score are:
- Track record of timely payment of bills
- Repaying loans within their tenure
- No history of overdue payments or default
- A low debt-to-income ratio
Here are the positive impacts of a good credit score:
- The probability of your loan and credit card application being approved is higher since you are seen as a low-risk borrower.
- When you have a credit score of 750 or above, you are eligible for higher limits on credit cards, preferential interest rates, pre approved loan offers, and better terms on credit products.
- When you have a credit report with a good credit score, then it is favorable for you in apartment rentals. This is because landlords will consider those with good credit scores as financially responsible people who don’t miss out on payments.
- Checking your credit report regularly helps you identify credit fraud. You can follow up with the respective financial institution and rectify the fraud.
Thus, your credit report is a very important piece of financial document for lenders to determine your creditworthiness. You must check your credit report regularly to keep track of any discrepancies in your credit report which might affect your credit score. If your credit score is not good, then you have to take steps to improve it.
FAQS of What Is A Credit Report
1:What are the 3 reasons to check your credit report?
You can find out incomplete or inaccurate information, be aware of what lenders may see, and make sure that accounts are reported properly.
2:How to check your credit score?
Before applying for a credit card or loan, you should definitely check your credit score. You can place an online request with the credit rating website on which you are going to check the credit score. CreditMantri offers a hassle free and seamless process to check your credit score.