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What is a credit report?

The credit report is a detailed breakdown of your credit history prepared by credit bureaus. In India, there are 4 credit bureau organizations (CIBIL, Experian, Equifax & CRIF). These organizations collect your financial information from your Banks and NBFC. They use this information to create your credit report. Lenders use this information along with many other details to determine your creditworthiness before approving a loan or credit card. [1]

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In India, there are 4 Credit Bureaus which are registered SEBI and prepare credit reports on individuals, which are as follows:

  1. TransUnion Credit Information Bureau India Limited (CIBIL).
  2. Equifax
  3. CRIF High Mark 
  4. Experian

There is no differentiating factor between these credit bureaus. If you are applying for a loan or a credit card in India, then it is important to know your credit report so that you can get better deals.

What is a Credit Score?

It is a 3-digit number that represents your creditworthiness. This score falls between a range of 300-900. A higher credit score offers various benefits and helps you when you apply for loans or credit cards. If you have a low credit score then this means that you are an irresponsible borrower and have a bad credit history. 

NH/NA: This means that the person trying to determine his credit score does not have a credit history. 

300-549: credit score in this range is considered the worst score. This indicates that the borrower has been irresponsible about repaying loans and might even have unpaid dues.

550-649: this score is considered that as average. Anybody with this credit score should work towards building a better credit score. 

650-749: a credit score in this range is considered good. Banks and lenders will offer loans and credit cards to people with a credit score in this range. However, the deals offered with this score are not very good. Loans will be offered at high-interest rates.

750-900: this credit score range in the best. Banks and lenders will be willing to offer loans and credit cards at cheaper rates. This score will give the borrower some negotiating power. 

Why is a credit score important for you?

Your credit score is important as it has a significant influence on your financial future. This is the major determining factor when you apply for loans and credit cards. Beyond the convention, it is also used as a check when you apply for jobs, utilities, and rental homes. 

Insurance companies also use your credit score as a secondary factor when deciding the premiums, you pay. This makes keeping a high credit score of paramount importance for you.

Credit scores are a financial tool at your disposal but they work for you only if you work for it. You will have to create it and ensure that is it increases over time.

Grow your credit score 
  • Paying bills on time is critical to growing your score. This matters the most.
  • Light but regular use of credit cards will improve your score. You should know the limit of your card and should utilize no more than 30% of the credit limit. 
  • Pay balances in full. If your goal is to improve your score, then there is no need to carry balances. However, if you still carry balances then try paying back as soon as possible. 
  • Avoid closing accounts even when you are not using a credit card. 
Defend your score 

When you have or achieve a good credit score – generally 700 or above – then you have a lot to lose. 

A single delay in payment can blow away your score. You should consider putting your credit card accounts on auto-payment to prevent this from happening. 

Our Credit Report Features 
  • Free Credit Report – We will gather your credit report from Experian and based on that data, analyze your report to tell you which aspect needs improvement
  • Payment History – Having a credit report handy helps you to check your past loan payments and credit card settlements all in one place 
  • Improve Score – We provide expert advice on improving credit score
  • Safe & Secure – We do not provide or pass on your sensitive information to any third parties or financial institutions. 
Key Drivers of your Credit Report
  • Payment History – timely payments of your loan and credit card dues help in improving your credit score. 
  • Credit Utilization – using your credit card moderately will improve your credit score.
  • Portfolio Mix – a good mix of credit cards and loans is good for your credit score. 
  • Age of Accounts – if you have a long credit history, then this signifies your repayment capacity which receives a higher score from credit bureaus. 
  • Credit Enquiries – if you enquire a lot about credit cards and loans that are linked to your applications, then this is not good for your credit score.