Learn about the key elements of a credit report, its importance, how it’s created, and how to obtain and review it to manage your financial health effectively.
A credit report is a record of your credit history, maintained by a credit bureau. It details loans, credit cards, repayment behaviour, and defaults, helping lenders assess your creditworthiness. Understanding what a credit report is helps you manage your finances effectively.
A credit report details your credit history and is used by lenders to evaluate your creditworthiness
It includes information from various sources like banks, credit card companies, and lenders
Your credit report is a critical factor in determining approval for loans, credit cards, and mortgages
There are several credit report types, including those from CIBIL, Equifax, and Experian, each providing insights into your financial reliability
Regularly reviewing your credit report helps ensure the accuracy of your financial information and prevents identity theft or fraud
A credit report can be obtained from various credit bureaus, each offering slightly different information based on their collection methods.
The primary credit report types include:
This is one of the most common types in India, maintained by the Credit Information Bureau India Limited (CIBIL). It contains information about loans, credit cards, outstanding debts, and payment history.
Equifax provides detailed credit reports that track consumer credit history. It includes credit scores and other financial data used by lenders for making lending decisions.
Experian’s credit report provides a comprehensive look at an individual’s creditworthiness, including credit scores, account status, and payment histories.
CRIF Highmark’s credit report offers insights into your credit behaviour, including how you manage debt and your history with different financial institutions.
Your credit report is a critical tool in managing your financial future. It plays a significant role in the following areas:
Lenders use your credit report to determine whether to approve loans or credit cards
A good credit report can lead to lower interest rates on loans, saving you money in the long term
Landlords may check your credit report to assess your reliability as a tenant
Some employers review credit reports as part of their hiring process, especially for positions that require financial responsibility
Insurers may use your credit report to determine rates for car or home insurance policies
A credit report is generated by credit bureaus, which collect data from various sources, including banks, financial institutions, and lenders.
The process of creating a credit report involves the following steps:
Financial institutions such as banks, credit card companies, and other lenders share information about your credit accounts with credit bureaus. This includes details about your loans, repayment history, and credit limits.
Credit bureaus use this information to compile a detailed report, categorising your credit accounts, payment histories, and other relevant data.
Based on the data provided, the credit bureaus calculate your credit score, which is a numerical representation of your creditworthiness.
Your credit report is updated regularly, typically once a month, based on new information provided by creditors.
Understanding how your credit report is created can help you take proactive steps in managing your financial records and improving your credit score.
Credit reports serve as a tool for lenders to assess an individual’s creditworthiness and risk level. When you apply for credit, lenders refer to your credit report to evaluate whether you are likely to repay the loan.
They look for:
Lenders assess your history of managing credit, including timely payments, defaults, or bankruptcies
A high level of outstanding debt may indicate that you are financially stretched and may be a higher risk for lenders
Multiple recent credit inquiries could signal financial instability or overextension
Your credit report is used by various entities to assess your financial reliability. Here's how it's typically used:
Banks and financial institutions use your credit report to decide if you qualify for a loan or credit card. It helps them evaluate your ability to repay the borrowed amount.
If you’re renting a property, landlords may check your credit report to determine if you are financially responsible.
Certain employers, especially those in finance or security, may review your credit report as part of the hiring process.
Some insurance providers use your credit report to decide your premiums, as it’s believed that individuals with better credit scores are less likely to file claims.
The length of time information stays on your credit report varies depending on the type of data:
Information such as on-time payments, open accounts, and loans in good standing can stay on your report indefinitely. However, it typically loses its impact over time.
Late payments remain on your report for up to 7 years from the date of the missed payment.
Bankruptcies can stay on your credit report for up to 10 years, significantly impacting your credit score.
Hard inquiries, made when you apply for credit, stay on your report for up to 2 years but only affect your score for the first year.
You are entitled to request a free credit report once a year from the major credit bureaus in India. Here's how you can obtain your credit report for free:
You can check your credit score on Bajaj Markets. It is simple to use, user-friendly, and provides accurate results powered by trusted credit bureaus.
Visit the official websites of credit bureaus such as CIBIL, Equifax, Experian, or CRIF Highmark to request your free credit report, available once a year. You will typically need to provide personal information and may need to verify your identity. To access your credit report more than once a year, or on a regular basis, you will need to subscribe to a paid plan from the respective bureau.
Many mobile apps, including those from the credit bureaus and financial services platforms, allow you to request and review your credit report from the convenience of your phone.
In some cases, the government or authorised agencies may offer a free credit report as part of financial literacy initiatives.
Here’s a quick comparison of the cost and services provided by major credit bureaus for obtaining your credit report:
| Credit Bureau | Cost for Credit Report | Subscription Plans / Other Pricing |
|---|---|---|
TransUnion CIBIL |
Free (one-time score only) |
₹550 per month (includes score simulator, score history, and other features). Free annual credit report available once per calendar year. |
Equifax |
Free (one-time report) |
₹450 per quarter (credit report with score and score simulation). One free credit report per year. |
Experian |
Free (unlimited reports) |
₹499 per year (includes credit score factors, score simulator, credit monitor, and other features). |
CRIF Highmark |
Free (one-time score) |
₹599 per month or ₹399 per month (includes credit report, credit score & history, social benchmarking, and score simulator). |
Note: The free report can be accessed once a year, with additional reports and features available through paid subscription plans. The cost and included features vary depending on the bureau and service package chosen.
You should regularly check your credit report to stay informed about your financial status. Here are some key times when you should review your credit report:
Check your credit report before applying for a loan or credit card to ensure there are no errors and to get an idea of your creditworthiness
Once you have settled a debt or closed an account, check your report to confirm that the information has been updated
If you notice a significant drop in your credit score, it’s important to review your credit report for potential errors or fraudulent activity
At least once a year, even if you're not planning any major financial moves, to ensure your information is accurate and to prevent identity theft
When reviewing your credit report, pay attention to the following key sections:
Ensure your name, address, and other details are correct
Check that all accounts listed belong to you and that the status (open, closed, etc.) is accurate
Review the payment history to ensure that there are no missed or late payments that you didn’t make
Make sure that any inquiries listed are from legitimate sources and not the result of fraudulent activity
Check for any bankruptcies, judgments, or collections that are inaccurately reported
You can check your credit report online by visiting the official websites of credit bureaus like CIBIL, Equifax, Experian, or CRIF Highmark. You are entitled to a free report once a year. You can also use Bajaj Markets that offers free access to your credit report.
No, checking your own credit report does not hurt your score. This is considered a "soft inquiry." Only hard inquiries, such as those made by lenders when you apply for credit, may temporarily affect your score.
A credit report is a detailed record of your financial history, including loans, credit cards, payment history, and any defaults. A credit score is a three-digit number derived from your credit report, summarising your creditworthiness. While the report offers a comprehensive view of your credit history, the score gives a quick snapshot of your financial reliability.
A credit report helps you understand your financial status and can impact major financial decisions, such as loan approvals and interest rates. It’s important for monitoring your credit health, detecting fraud, and ensuring accuracy in your financial records.
Your credit report will provide a detailed history of your credit accounts, payment history, outstanding debts, credit inquiries, and public records. It shows how well you manage credit and whether you are a reliable borrower.
Your credit report is generally private, and only authorised parties can access it with your permission. These parties include lenders, potential landlords, insurance companies, and employers (in some cases). You can also access your own report for free once a year.
A credit report typically includes:
Lenders use the credit report from the major credit bureaus, such as CIBIL, Equifax, Experian, or CRIF Highmark. They typically check your credit report from the bureau with which they have a relationship or one that provides the most relevant data.
To check a free credit report, visit the official websites of the credit bureaus like CIBIL, Equifax, Experian, or CRIF Highmark. You are entitled to one free report per year. Alternatively, you can use Bajaj Markets to access your report for free.
A company credit report provides a detailed look at a business’s financial history, including its credit accounts, payment history, and legal standing. A personal credit report focuses on an individual’s credit behaviour and financial status, such as loans, credit cards, and payment histories.
Yes, if you spot any errors in your credit report, you can dispute them directly with the credit bureau. They will investigate the issue and update your report if necessary, typically within 30 days.
STD in a credit report refers to "Standard," indicating that a loan or credit account is in good standing and has been paid according to the agreed terms. It shows that the account is not overdue or in default.
Yes, credit reports are typically password-protected to ensure privacy and prevent unauthorised access. You may need to create an account and verify your identity to access your report.
You can track updates to your credit score through regular reports provided by credit bureaus or through subscription services that offer real-time credit score monitoring.