- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Credit Report: Overview
Based on your loans, credit cards and other related monetary credit products provided by lenders, Credit Bureaus prepare Credit Report. The Credit Report information is used by the lenders and creditors to determine the creditworthiness of the individual whether you’ll pay back the credit or not. They will look at balances of relevant accounts, your active accounts and your payment history.
A credit report contains information related to financial history to all forms of credit. The important factors that include in part of the credit report include all sorts of home loan, personal, car loan and credit cards.
Who prepares Credit Reports in India?
Credit Reports are prepared by companies known as credit bureaus or credit reporting agencies, who collect the related information from borrowers and Non-banking financial companies knowns as NBFCs. Experian, CIBIL TransUnion, CRIF High Mark and Equifax are Credit Bureaus in India. The same individual’s credit score varies because each credit bureau has different credit scoring models.
What’s Inside a Credit Report Card?
Credit Report contains all historic records related to your borrowing products such as credit cards and loans. Apart from these it also contains the identity information.
- PAN Number
- Date of Birth
- Voter’s ID card, Driving License etc. and any other additional identity information
- Your previous and current employers with address
- Your previous and current residential address
- Through previous IT filings, income tax information is availed
- Overdraft facilities information that is available with your banking accounts
- To determine credit/loan eligibility, the dates on which your credit was pulled by the lenders
How to Read Your Credit Report?
The four major credit bureaus namely, CIBIL, Experian, Equifax and CRIF Highmark provide credit report. Now the challenge is how to read and understand your Credit Report. There are the lot of abbreviations, terms and numbers. Each Credit Report will have information that is different because creditors provide credit information to whichever credit bureau they want.
The credit report consists of credit history, inquiries, public records and identifying information. Other information may include previous and present addresses, driver license numbers, telephone numbers, and your date of birth. In each account, the account number and the name of the creditor will be included.
- The entries might include
- The credit which may be mortgage or car loan etc
- It contains whether the account is only in your name or with another person
- The amount you still owe
- Account and its status (paid, inactive, open, closed etc.)
- It contains the total amount of the credit or loan and the highest credit limit on the card
- How well you have been paying the account
- Minimum Monthly amount or fixed monthly payments
How often is My Credit Report Updated?
As banks update your data on monthly basis, Credit Reports too generally are updated once in a month and also it depends on the reporting cycle of the creditor as each individual may have more than many credit accounts.
How Long Does Negative Information Stay on My Credit Report?
There is no specific time period regarding Negative information that will stay on your credit report. The best possible way for this problem is to prevent Negative information to stay on your Credit Report, however if it is there find the ways to fix it which will help you to improve your credit score. A holistic approach and solution to the problem related to Negative Information would serve the purpose.
How Do I Ensure My Credit Report is Accurate?
Undoubtedly, It is important to ensure that information and data in Credit Report to be accurate. Check your credit report by ordering it from each of the credit bureaus every year. If you find any discrepancies in your credit report communicate the same to fix it.
Usually, creditors send the information to the credit bureaus and the information is audited by credit bureaus to ensure it is up to date and accurate. When you contact credit bureau for any discrepancies the credit bureau contacts lenders. The lender is responsible for making sure the information that he provides to credit bureaus should be up to date and accurate. It is good for you to review your credit report on a regular basis.
Credit Report FAQs
1. What is a Credit Report?
A credit report includes the information regarding how much debt is accumulated. It contains the financial history of all forms of credit. Presently there are four types of credit bureaus in India which provides Credit Report and that includes Experian, CRIF High mark, CIBIL and Equifax.
Credit Report will have credit account details like credit cards, loans, Credit Summary, Personal Information, Account details section and Inquiries section.
2. Who sees your credit reports?
Several kinds of organizations can obtain your credit reports and credit scores. Banks, creditors, Collection agencies can see your credit report. You can check your credit report to ensure that you’re financial and personal information is accurate. You can order Credit Report from any of the credit bureaus like Experian, CIBIL, Equifax and CRIF High mark.
3. Why check my credit Report:
Checking your credit report helps you to know and track any problem or errors in your financial history. It also reflects any applications that are failed and the things which you can fix.
4. How many credit report agencies are there in India?
In India, at present there are four types of credit report agencies Experian, CIBIL, Equifax and CRIF Highmark.
5. What is not included on a credit report?
- Medical History
- Criminal Record
- Student Loans
- Savings accounts
- Balance of your current account
6. Can I correct errors on my credit Report?
Yes. You can communicate to fix any error or any problem that you find wrong in your credit report.
7. Can I Check My Free Credit Report with Creditseva?
Yes, Creditseva provides Updated Credit Report for free!
8. When a Credit Report Pulled and what is the necessity?
Your Credit Report is pulled when you are applying for any credit or loan. To know whether you can able to repay the loan and to know your creditworthiness.
9. The Impact of pulling the credit report?
There are two types of soft and hard inquiry. Generally, when you check your Credit Report it is known as the Soft inquiry. This will not have any impact on your credit report, on the other hand, hard enquiry happens when any lender pulls your credit report to know your credit worthiness and it will decrease your credit score.
10. Who can pull your report?
When you apply for any loan or mortgage, the lender can pull your report, the reason being to know your past credit History and your creditworthiness.
Accusation Of Misleading Credit Reporting On Equifax, TransUnion, Experian and First Progress Card
30 March, 2017:
It has been in the news for some while now that a woman from New Baden is going to sue some major credit bureaus for incorrect information that has misled the credit reporting. It has been observed that the Act Of Fair Credit Reporting was deliberately contravened.
The woman who says that she would sue the credit reporting agencies has suffered from expenses that were to be paid excessively has experienced that she was not given credit on the terms that were favourable to her, she had to pay a huge amount for the insurance as well as the cost of credit.
It so happened that the credit bureaus were not able to adopt the exact procedures and could not make appropriate cross-checking of the woman’s credit information. It has been told by the woman that the credit bureaus were unable to take the necessary steps for blocking or deleting the information that was incorrect.
The complainant has requested the court to provide her with the damages that have been sanctioned and penal and also the fees that has been given by her to the attorney along with some reliefs that the court feels appropriate.