All lenders need to be sure that you will repay the money that you are borrowing. To ascertain if you will pay the money back they refer to the Credit report or CIBIL report. The first step to having a good credit score is to understand what credit report is and what components it has, therefore it is important to know what is a CIBIL report and what does it contain. Conceptually the credit report reflects how you have borrowed in the past and what your credit history has been like.
What is your CIBIL/Credit report?
The CIBIL / Credit report is a repository of your financial history and behaviour. It includes details of all the loans you have and the repayments you have made.
These credit reports are maintained by credit bureaus such as CIBIL, Experian and Equifax. The lenders can contact any one of these credit bureaus to check your credit report. However, the customer must authorise the lender to conduct this check and it cannot be done by the lender without the permission of the applicant.
These credit checks are conducted when you apply for any of the following: Credit card, Home loan, Personal Loan, Auto loan. Based on the result of the application the lender decided how to process your application. Every time a lender conducts a credit check it is recorded on your credit report
What does your CIBIL/Credit report show?
Your credit report contains the following information
- Details of all your loans. It shows the start date of the loans, loan amount, loan outstanding, loan tenure.
- Details of all the payments that you have made for all the loans and if they were made on time.
- All the other applications you made for loans( Including mortgage, credit cards and loans) with lenders.
- Your current and previous address as recorded by lenders when you had applied.
- Any debt writes off or settlements that you have had with the banks for non-payment of your dues.
Now that you know what is a credit report you can learn more in detail about the factors that affect your credit score on mymoneykarma.com to help you have a good score.