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How to Read Your Credit Report?

By Finserv MARKETS - Apr 16,2020
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How to Read CIBIL Report How to Read CIBIL Report How to Read CIBIL Report

Given the ease with which credit is available in the modern age, there are a number of financial needs that can be met swiftly and conveniently. However, whenever you apply for credit, be it a variety of loans or credit cards, the first step of eligibility will always be your credit history. Hence, an important element in this process is the need to review one’s credit reports on a regular basis.

In order to stay up to date with your credit-related activities, you must learn how to efficiently read your credit report (most commonly, CIBIL report) and glean the most important data points from it. Here are some important pieces of information that can help you along the process.

What is a Credit Report?

A credit report is a detailed, comprehensive record of an individual’s credit history and credit-related activities. It is generated by an official Credit Information Company or credit bureau, the key points of this report are based on the data it receives from banks and financial institutions.

In India, the most common and preferred type of credit report is CIBIL reports. These are generated by the Credit Information Bureau (India) Limited and account for an individual’s credit activities over 36 months. It is important to note that with the advent of the internet, you can easily view your CIBIL reports online, without the need for printing or retrieving hard copies.

One of the most convenient ways of checking your CIBIL reports online is by downloading the Finserv MARKETS app and selecting the ‘check CIBIL score’ option. Apart from offering you your CIBIL score and CIBIL report, the financial report on the Finserv MARKETS app also provides you with a personalized financial health check.

How Do I Read My CIBIL Report?

Your CIBIL report online, such as on the Finserv MARKETS app, includes an extensive range of information about you, which includes your personal information, employment information as well as detailed specifics of your credit-related activities. All this information is grouped into specific sections for the sake of structure.

n order to understand how to read your CIBIL report, let us take a look at its most important sections:

  • CIBIL Score:

This is the first section of your CIBIL report online. The CIBIL score, that can range from 300 to 900, is the numerical representation of your creditworthiness. For those new to credit or those who have been inactive with their credit activities, this section typically displays ‘NA’ or ‘NH’.

This number is calculated and generated based on your overall credit-related data such as repayment history, credit utilization ratio, spending behavior and loan applications. The general understanding is that the higher your credit score, the higher your chances are of getting credit requests approved.

  • Personal and Contact Information: 

This section contains all the necessary and relevant information about you that is stored by banks and financial institutions. This includes your name, PAN number, passport information as well as contact information such as your number, email ID and permanent address. On reviewing your CIBIL report online, it is crucial to make sure that these details are accurate and updated.

  • Account Information:

This is possibly one of the most important sections in your CIBIL report since it provides the most amount of details about your credit activities. This section includes information about any past or current credit cards or loans you have availed as well as all payments made towards them.

The individual credit types also have an indicator next to them to show how soon their payments were made. ‘STD’ means that the payments were made within 90 days, ‘SUB’ means that the payments were made after 90 days while ‘XXX’ means that there is no payment information available for the same.

  • Enquiries:

The section of your CIBIL report online that is of most relevance to new lenders is the enquiries section. Whenever you file a credit application, the lender issues a hard enquiry into your credit history. This enquiries section is where the information about all such hard enquiries made by lenders is reflected.

You can easily check credit score using pan card

Why is My Credit Report Important?

Credit reports, such as CIBIL reports online on the Finserv MARKETS app are crucial since they serve as a single exhaustive record of an individual’s previous and current credit and repayment history. It is useful for any potential lenders since it gives them an understanding of the person’s spending behavior and credit trustworthiness. With the CIBIL report, therefore, lenders can make better-informed judgments about whether a loan should be approved or not.

As for the individuals themselves, CIBIL reports are an effective means of analyzing their own spending behavior and determining their strengths and weaknesses with respect to credit. Checking your CIBIL reports online regularly gives you the opportunity to improve your credit health and increase your chances of availing loans and other forms of credit in the future. Know more about Importance of CIBIL Report.

You can easily check your CIBIL report online by logging in through the Finserv MARKETS mobile app. The financial health report available on the Finserv MARKETS app gives details about your financial performance across various parameters. This, in turn, helps you make better informed financial decisions in the future and protect your financial health.

Check CIBIL Score

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522