Your credit report changes periodically as per the consumer credit information provided by the lending banks and NBFCs to the Credit Information Companies (CICs) or Credit Bureaus, on a monthly basis. Thus, it is necessary to check your credit report for errors and to resolve them at the earliest to avoid any dip in your credit score. There are various things to review in your credit report to remain updated and check for inaccuracies or faulty/old information, if any.
As per the RBI, you are entitled to receive a free credit report once a year each from all the four leading Credit Bureaus named as TransUnion CIBIL, Experian, Equifax and CRIF High Mark. Therefore, you can check your free credit score and make informed decisions in order to avail credit facilities, such as home loan, personal loan, car loan, credit card, etc.
Checklist of Credit Report
Below mentioned is the checklist of the credit report for you to keep a thorough look and be more conversant.
1) Credit Score
Credit score is considered as the most exclusive section of the credit report, as it depicts your creditworthiness and determines the chances of loan approval or denial. Credit score is a 3-digit numeric that ranges from 300-900 and the closer your score is to 900, makes you at lowest risk for the lender to offer you loans or credit cards. This section may also show terms, such as NA or NH that means either you have no past credit history or you are new to the credit system. In this case, you can avail credit cards at first to start building your credit score.
2) Personal and Contact Information
The next section of the report provides information regarding your personal and contact information as provided by the lenders to the CICs.
Personal Information include the following details:
- Date of Birth
- Identification Type (PAN card details) – Number, Issue Date and Expiration Date
Contact Information provides information related to the details of registered address, as provided by the Banks and NBFCs.
3) Employment Information
This section provides the information of your employment, occupation, income at the time of loan or credit card application submission. Usually, most of the lenders check your company details where you work. Applicants working with the listed, reputed and renowned organizations are more privileged to get hassle-free loan approval.
4) Account Information
This is the most vital section of all others, as it reflects your all the past and existing credit accounts and payment history. It provides information related to all types of availed loans, such as home loan, personal loan, auto loan, education loan, business loan, as well as credit cards. Additional information in this section includes the following:
- Loan account number
- Account status
- Mode of loan holding (Single or Joint)
- Loan amount, loan open date, last payment date
- Current account balance
- Loan amount overdue, if any
- Month-on-month loan repayment details up to 36 months (varies from Bureau to Bureau)
- Collateral/Security details, if submitted
- Days Past Due (DPD) details, etc.
5) Enquiry Section
Enquiry section holds all the information regarding the past and existing enquiries or credit requests that you have made so far related to your credit facilities, such as loans and credit cards. It contains details of the name of your lender, loan application date, loan type, loan amount, etc. Multiple loan enquiries in a short span of time shall depict your credit hungry behaviour to the lender that eventually may lower your credit score.
6) Consumer Dispute Remarks
This remarks section allows you to add comments, feedback and remarks to your credit report for lenders to check and take action. Remember that the remarks section shall be accessible to you and your lender for a maximum 12 months.
Start monitoring your credit report regularly to increase your future prospects in availing credit products at competitive interest rates. In case you find any error related to the details mentioned in your credit report, you can right away raise consumer disputes by filling an online form at the official website of the credit bureau or Credit Information Company. Get any of these errors rectified at the earliest to maintain a healthy credit score and enjoy the benefits of your borrowings.