Benefits of a good Credit Score:

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If you have a good Credit Score, you can avail loans and Credit Cards faster and with ease. Check yours now!

Get The Best Credit Card – A good Credit Score may get you the best Credit Cards. Get a feature-loaded card and reap the benefits.
Quick Loan Approval – A good Credit Score works like an expressway for your loan application. Banks may approve your application quickly and readily.
Better Interest Rate – With the backing of a good Credit Score, you can bargain for a lower rate of interest on loans and Credit Cards.
Loans Made More Affordable – Loans come saddled with processing fees and many other charges. You can bargain your way out of some of these charges with a good Credit Score.

Check your Credit Score right away and see if you are eligible for all these benefits. You can check your score on BankBazaar at zero cost.

Credit Score/Credit Report

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Why Do Lenders Check Your Credit Score Before Approving Your Loan

A credit score is a 3-digit numeric value. This figure reflects your creditworthiness.

A score closer to 900 is a very good score. Lenders will look into your credit score to see how credit worthy you are. The closer your credit score is to 900, the higher the chances that the lender will approve your loan application. A high credit score reflects a high credit history and shows the lender that you are capable of repaying the loan.

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List of Credit Information Companies in India:

TransUnion CIBIL Limited:(earlier known as – Credit Information Bureau (India) Limited) is the first Credit Information Company (CIC) of India that was founded in August 2000. The company collects and maintains records of an individual’s repayment habits related to loans and credit cards.These records are sent to TransUnion CIBIL Limited by the member banks and financial institutions on a monthly basis. The information received from these establishments is used to create Credit Information Reports (CIR) and credit scores. These reports and credit scores are provided to lending institutions such as banks in order to help them make lending decisions.
Experian Credit Information Company of India Private Limited:With headquarters in Dublin, Republic of Ireland, Experian uses its own methods of calculation to create credit reports. The credit report from Experian has information on an individual’s credit and loan history that are bought as credit reports by various banks in India.Similar to TransUnion CIBIL Limited, Experian collects information from member banks and other establishments. The lenders are required to pay a fee to obtain credit reports from Experian.
Equifax Credit Information Services Private Limited (ECIS):One of the oldest credit information companies in the USA, Equifax is also the largest credit reporting agency in the US. Headquartered in Atlanta, Equifax provides credit reports for individuals as well as businesses.Equifax has tied up with various banks and institutions in India that help the company in creating credit reports and assessing credit scores.
CRIF High Mark:Considered to be one of the few credit information companies that specialise in analytics, scoring, and credit management solutions. CRIF High Mark creates credit reports based on the information collected from banks, Income Tax Department, and other banking as well as non-banking companies.The credit reports from CRIF High Mark are available for a fee. There are many Indian banks that have tied up with CRIF High Mark to create reports and to assess their borrower’s financial credibility.

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Why Credit Reports are Used?

Determining creditworthiness
Reviewing missed/late payments
Checking the credit score online
To analyse all credit and loan accounts under one platform
Reporting errors on the report
Making effective landing decisions, etc.

The Application Process for Obtaining your Credit Report

Most CICs offer credit reports through online and offline mediums. The applicant has to submit the requested documents and pay the relevant charges to obtain a credit report.

The following documents and details are required for obtaining a credit report online:

Name
Date of birth Details
Address
PAN card number
Identity authentication

The following documents and details are required for obtaining a credit report offline:

Visit the CIC’s site to download and fill out the form requesting for your credit report
Self-attested and scanned copy of any of the Proof of Identity (PoI) such as PAN card, Driving Licence, etc.
Enclose a Demand Draft (DD) that is payable to the relevant CIC for the required fee
Mail the documents along with the DD to the address mentioned on the CIC’s website

What is the Difference between a Credit Score, Credit Rating, and a Credit Report?

Credit Report	Credit Score	Credit Rating
Your credit report has information on the current and past credit agreements that you hold. These include mortgages, credit card accounts, student loans, and inquiries on your credit history.	A credit score is similar to a grade that is provided to your credit report. It is a 3-digit number that usually ranges from 300 to 900.	A credit rating functions as an indicator of an organisation’s ability to repay its loans.
The credit report is a reflection of your credit management, and you have control over the listings there.	The credit reporting bureau assigns you the credit score based on your credit history.	In order to determine whether or not these borrowers will be able to repay loans on time, specialized credit rating agencies analyse their financial risk.
The credit report gives an outline on how much you owe your creditors over an extended period of time, whether you have been making payments consistently, and for how long each account was open. The report also lists associated public records against you, such as court judgements, bankruptcy filings, etc.	A high credit score indicates that you are a low-risk borrower, making you more likely to qualify for a loan.	The credit rating agencies use an in-depth report to determine this rating, which considers a number of variables including previous debts, past lending and borrowing history, ability to pay back the debt, etc.
In order to access your credit report, you can get in touch with credit reporting agencies or use a credit monitoring service that offers you this information.	Your credit score is a part of the exhaustive credit report that you receive from the credit bureau.	The highest credit rating is AAA or A1, which demonstrates safety in terms of principal and interest repayment. D is the lowest possible rating.

Importance of Credit Reports for Companies and Businesses

Similar to individual credit reports, the CICs prepare credit reports and assign credit ratings to businesses and all other types of firms. The credit report for businesses is closely reviewed by suppliers and government agencies while providing utility and business contracts.

The credit reports for businesses provide information related to the establishment, owners/directors, employees, profit and loss, liability, assets, pending court cases (if any), and various other details. These type of credit reports can be expensive based on the amount and type of information it offers.

Understanding the Credit Reports through Key Terms

NA or NH:If you never owned a credit card or took a loan, there are chances that you will see an NA or NH on your credit score. NA or NH indicates that there are no, little, or insufficient credit activity to create a report or to generate an online credit score.

STD: Applicable to an individual’s credit report where the payments are made with the due dates.

SMA: Applicable on a credit report when the borrower has delayed the repayments.

DBT: This indicates a doubtful situation where the credit information has been inactive for over 12 months.

LSS: A credit report can be remarked as LSS if a lender reported the loan/credit card account as loss or if the account remains as a defaulter for a longer period of time.

DPD: Days past due (DPD) indicates the number of days that the account has not received a payment. Written Off/Settled Status: In a situation where the borrower could not make the repayment but came to an agreement with the lender for either a repayment plan or a settlement will indicate a written off or settled status.Check your Credit Score

Reading a Credit Report

A credit report is a detailed account of a person’s credit history. The credit report will include details of your credit accounts, like, credit cards, auto loans, home loans and any other form of credit availed from a registered lender.

The credit report will also include details like payment history, credit limit and account balance, the opening date of credit, and the status of loans (close or open, paid in full, not paid in full). The report will also include new credit inquiries, collection records and public records, for cases in which an individual has filed for bankruptcy or a tax lien.

A credit report can seem like quite an intimidating document to read, but listed below is a section-wise breakdown of how a person should read his/her credit report:

Personal Information: This section of the credit report will contain information pertaining to the individual’s identity, such as, the person’s name, address, current and previous accounts, date of birth, etc. An individual should check the details provided under this section, if there is an incorrect address in the report or the person’s name has been misspelt, he/she should report this to the Credit Rating Agency (CRA) as this could be a sign of wrong data being reflected in the report or credit fraud.

Account Information: This section of the credit report will carry information pertaining to the person’s present and past credit accounts. The individual should check the details of this section carefully as this is quite a detailed section. The following details should be checked:

Date of opening
Name of creditor
Current balance
Highest balance/credit limit
Monthly payment history
Account type (Instalment, revolving, open)
Account ownership (Individual or joint)
Payment status

Public Records: This section of the Credit Report will list bankruptcies filed by the individual, tax liens availed by the individual or collection accounts. The dates provided in this section should be checked as they will directly affect how long they will appear on an individual’s credit report and affect the person’s credit score.

Inquiries: This section carries data pertaining to any inquiries made by companies regarding an individual’s credit score. If an individual applies for multiple lines of credit, this could affect his/her score negatively. In most cases, inquiries do not affect a person’s credit score, as they are soft inquiries by lenders for promotional purposes. A soft inquiry is generated when the request for the credit report is not related to the individual’s request for credit.

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FAQs on Credit Score/Credit Report

How do credit scores change?The credit score depends on the credit report changes, as and when the changes are made to the credit report, the credit score would change depending on the positive or negative impacts.
Who can access my credit report?Your credit report can be accessed by you, lenders, and government-recognized regulating bodies.
How can I improve my Credit Score?There are many ways by which you can improve your credit score. Some of these ways are maintaining payment of loan EMIs and credit card bills. Along with this, limited borrowing and maintaining a credit utilisation ratio of less than 30% can also help your score.
Why is PAN card required for checking the credit score?The PAN card is required for obtaining the individual’s score accurately.
Why do we need a phone number for a credit score?The phone number helps in identifying individuals accurately. Your credit report will already have your phone number, when you provide your phone number, it is verified against your records to ensure you are the right recipient for your credit score.
Is there a limit to the request for accessing a credit score?There are no limits to the inquiry of credit score.
What is the significance of credit score range?The credit score range can vary depending on the assessor, however, the value will represent the same level of creditworthiness.
What are the factors that are included in the calculation of a credit score?There are a few factors that are considered while calculating an individual’s credit score. Primarily, the account information that includes information on credit cards and loans, the public records containing information pertaining to tax lien and bankruptcy, and the hard inquiries made by your lenders will be accountable for the calculation of your credit score.
Will the credit score be affected for owning multiple credit cards?This will depend on your credit history. If you have multiple credit cards with a higher limit and you are under-utilizing or over-utilizing it, this can impact your credit score negatively.
What kind of information is not included in the credit report?A credit report won’t contain any information related to your checking or savings accounts. Also, the information pertaining to criminal records, medical history, lifestyle, and other details are not included in the credit report.
How long does the information remain on a credit report?This will depend on various factors such as the inclusion of hard inquiries, payment details, credit card, and loan applications. As soon any changes are detected, your credit report would change. The information is obtained on a monthly basis for the changes to be implemented. If you find any error on your credit report, you are recommended to get it corrected by the assessor.
Is it possible to delete information from the credit report?Unless it is incorrect, no details can be deleted from your credit report.
What do I need to do if I find errors on my credit report?If you notice any error or wrong entries in your credit report, you can get in touch with the credit report provided to get it rectified.
Is the Credit Information Report the same as the CIBIL Score?No, the Credit Information Report contains details of credit history and inquiries, CIBIL, like various other credit rating companies have its own method of calculating the score based on the information on the credit report.
Can the CIC (Credit Information Companies) change or delete my credit information?No, the CIC collects information from various financial institutions but doesn’t change any data. The CIC compiles information related to credit transactions and payment histories of an individual.
What is the highest score you can get on Experian?Experian’s credit score ranges from 300 – 850. 850 being the highest score.
Can I have more than one Credit Report?Yes, credit reports contain your overall banking history and are used to assess your credibility, which is your credit score.
What are the different ways by which I can check my credit score?You can visit the official website of the credit information company or visit BankBazaar.com to check your credit score.
Are there any charges levied to check the credit score?Usually, no charges are levied to check the credit score.
What is the highest possible credit score?Usually, the credit score ranges between 300 and 900. However, depending on the credit information company, the credit scores may vary.