How to Read Your Credit Report?

How to Read Credit Report

What is a credit report?

It is a record of your credit history that is maintained by the credit bureau. It provides a snapshot of your loan accounts and repayment track record. This credit report is used by the lenders to assess your credit worthiness. A CIBIL (Credit Information Bureau of India Limited) report has following six sections:
 

CIBIL Score  

‚ÄčIt plays a critical role in your loan approval process. A lender will always check your credit score before processing your loan application as a credit score indicates the probability of default of a person based on the credit history. It basically shows what are the chances of you defaulting on your loan payment based on your past credit usage and repayment record.
 

Read More about CIBIL Score
 

A credit score is derived from the “Accounts” and “Enquiry” section in your credit information -digit number that that ranges between 300 and 900. A score above 750 is considered a good score. If you are applying for a loan, the chances of getting it improves if you have a high CIBIL score.
 

CIBIL Report Sample


Personal Information

This section contains all personal information about you such as your name, date of birth, gender. This information will be in accordance to the information provided by various lenders to your credit bureau.  It will also have your income tax permanent account number (PAN), passport number, driving license number that you have reported to your lender. It will also contain your contact details.
 

CIBIL Personal Information Sample


Employment information

This section will contain your occupation and income (at the time of opening credit facility) as reported by your lender.
 

Employment information Form


Account information

It is the most critical part of your credit report. It contains the details of all your loans and credit cards you own. It will have name of the lenders, the type of loan taken that is whether it is a car loan, home loan, credit card etc. It will a lso have the account numbers, the mode of holding loan (single or joint), date of opening the account, date of last payment made, loan amount current balance and amount overdue (if any) and most importantly, a month-on-month record of up to 36 months of your payment.  It will also show any collateral that you have against any loan, the interest rate for each loan you have taken.  In this section, there is a sub-section called Days Past Dues. This shows month-on-month record of the payments made by you and if your loan was settled or you defaulted on any of the loans, it will be reflected here.

CIBIL Account information Form Sample


If there is a red band on the left of the report section then it indicates that the section is under dispute. The red ban will be removed after the dispute is closed. After the closure of the dispute, the disputed information may or may not be changed. It will depend on the lender. The credit bureau can’t make any changes in the report on its own. The lender has to send the information to the credit bureau, if the dispute is right. After receiving it from the lender, credit bureau will make any changes. After the dispute is resolved the red band will be removed.


Enquiry Section

Enquiry Section


It is the last section in your credit report.  It will have the name of the lenders that have enquired about you. It will have four columns – the lender name, purpose of enquiry and the amount of enquiry and the date on which the enquiry was made. It will have two types of enquires one a hard enquiry and other a soft enquiry. Enquiries by the lenders will be considered as hard enquiries and too many enquiries in a short span of time will portray you as credit hungry person and will negatively impact your credit score. Enquires made by you will be considered as soft enquires and will not have any impact on your credit score.
 

Read About: Factors that Affect Your Credit Score

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