All About Credit Report


Basic Definition of Credit Report

A credit report is a record maintained by a credit bureau consisting of a detailed breakdown of your debt repayment history and the status of your current credit accounts. Credit bureaus provide a credit score for creditworthiness, also known as a credit score.

Whenever a financial institution lends money to an individual, it regularly sends all the repayment-related data to credit bureaus. These companies collect details of each borrower's existing loans and repayments and prepare a credit report.

In India, there are four credit bureaus that are currently operational: TransUnion CIBIL, Equifax, CRIF High Mark and Experian.

KEY TAKEAWAYS

Here are some of the key takeaways:

  • A credit report is a summarised compilation of your past credit repayment behaviour prepared by a credit bureau.
  • It consists of personal information, loan account details, collection items, public records, and inquiries. Collection items include any payment delays, missed payments and circumstances like loans sent to collection agencies.
  • The score derived from a report is known as the credit score.

How Credit Reports Work

A credit report comprises five sections: personal information, credit account, collection item, public records and inquiries.

Personal information covers details like your name, current address, birthday, contact details, etc. The credit account section covers current and previous loan accounts, credit limit, account balance, credit account opening date and closing date, creditor’s name, etc. The collection items consist of missed payments, loans sent to agencies for collection, and details on overdue child support.

The inquiries section in your credit report includes the names of companies that have access to your credit report. Lenders use the information presented in your credit report and your credit score to determine whether you are eligible for a loan.

Credit Report vs. Credit Score

A credit report is a statement that demonstrates an individual's credit repayment details, prepared by a credit bureau. This credit bureau continuously collects data from lending institutions (banks and NBFCs) and prepares credit reports for each borrower. You can easily check your credit report online by submitting some basic details such as PAN, mobile number, etc.

A credit score is a three-digit number ranging between 300 to 900, reflecting an individual's creditworthiness. It demonstrates the loan repayment capacity of an individual.

The credit score is determined based on the repayment behaviour reflected in the credit report. Lending institutions refer to this credit score when approving a borrower's loan application. A credit score of 750 and above is considered a good score.

How to Check Your Credit Report?

Here is the step-by-step guide to checking your credit report online:

  • Step 1: Visit the official website of Poonawalla Fincorp.
  • Step 2: Click ‘Free CIBIL Score’ on the homepage.
  • Step 3: Click on the button ‘Get Your CIBIL Score’ and enter employment type and gender on the given form.
  • Step 4: Type in your name, PAN, contact details and other information.
  • Step 5: Check the terms and conditions, click ‘Agree’ and submit the form.

Your credit score will be generated, which can be downloaded in a short time.

Final Word

A credit report is a statement that consists of details regarding an individual’s credit repayment history, reflecting their financial behaviour. A credit report consists of various types of information, such as identification information, credit account information, inquiry information, bankruptcy-related information, collection accounts, etc.

Credit bureaus continuously collect loan repayment information from lending institutions and prepare a credit report for each borrower. Lenders check an individual's credit score, which is derived based on the information in a credit report.

Other Words

  • Collateral
  • Credit Rating Agency
  • Capital Assets
  • Creditworthiness

Apply for A Loan

Business Loan Logo

Business
Loan

Business Loan Logo

Business
Loan

Professional Loan Logo

Professional
Loan

Professional Loan Logo

Professional
Loan

personal loan Logo

Personal
Loan

personal loan Logo

Personal
Loan

Car Loan Logo

Pre-Owned
Car Loan

Car Loan Logo

Pre-Owned
Car Loan

Medical Equipment Loan Logo

Medical Equipment Loan

Medical Equipment Loan Logo

Medical Equipment Loan

Machinery Loan Logo

Machinery Loan

Machinery Loan Logo

Machinery Loan

Loan Against Property Logo

Loan Against
Property

Loan Against Property Logo

Loan Against
Property

Apply for A Loan

Contact Us logo Quick Apply CIBIL Score logo Free CIBIL Whatsapp logo Connect on WhatsApp