How to Read Your Credit/CIBIL Report - Trinity Credit solution
Before applying for any loan application, you must consider your CIBIL score is most essential factor that lenders consider. A Good credit score means 700 or above is considered to be good. So, make sure to get your CIBIL credit report from your bank or you can apply to the official website of CIBI.
If a person has a good credit score, then he or she has the right to negotiate with a bank or financial institution to ease interest rates. Many people think that only a highly stabilised enterprise can negotiate with interest rates, but that’s not the case. Every individual with a good income, a good credit score, and a clean credit information report has the right to negotiate interest rates with the bank.
Your credit report online includes information about your credit activity, payment history, and the status of your credit accounts as reported by your lenders and creditors, in addition to your credit score. Your credit report is divided into six sections: credit score, personal information, contact information, employment information, account information, and query information.
If you've recently pulled up your credit report online and are feeling overwhelmed by the amount of data, this guide will help you know the key parts of a credit report and how to read a CIBIL report improvement in Bangalore. Let’s take a look at each of these sections closely:
1. Credit Score Report
The first thing mentioned is your CIBIL score. As you may be aware, a CIBIL score is a three-digit numerical value that is determined depending on your credit activity. It ranges from 300 – 900. The closer your score is to 900, the better is your credit score. A credit score of 700 or higher is considered good. If your credit score is above 700, the bank is more likely to consider you for a loan or credit card.
2. Personal Information
This section contains your personal information such as your date of birth, name, PAN Card, as reported by the bank or lender. This information is collected by CIBIL to prove how accurate and genuine you’re. Go through the personal details closely and ensure that the details mentioned are accurate & Genuine.
3. Contact information
In the third column, you’ll see another section mentioning the contact information which includes your addresses, phone number, and email address. These facts are recorded as they are provided by the lenders. The report would include your office address, residential address - both permanent and current - as part of the addresses. The report includes not only current information, but also historical data. The historical data is limited to a maximum of four iterations.
4. Employment information
The employment information section contains information about your occupation and income based on the information you provided when opening a credit facility or loan account. This data is taken directly from the lenders' repayment information submitted to the bureau.
5. Account Information
This section consists of all details related to your credit accounts. This includes person's financial situation to a bank or financial organisation. It contains all of a person's prior and current loans, as well as credit card statements. It also includes information on how often the person makes payments and whether or not he or she has missed any deadlines. The account information also includes the person's bank account information. The sort of account the person has, whether it is a savings or a current account, as well as if it is a single or joint account, are among the facts. This allows them to better understand their actions and evaluate whether or not they should be given money.
6. Red Box
If any details are disputed in the Account Information section, a red box with an alert message appears above the account information, along with the date of the dispute.
7. Inquiry information
The final part of the CIBIL report is the inquiry section. It includes information on any recent lender queries. When you apply for a loan or credit facility, the lender will inquire about your credit history with CIBIL. The same information is included in your CIBIL report online. The name of the lender, the date of the application, the kind of loan, and the loan amount requested are all included in each record.
Conclusion
So, in order to maintain a healthy and good credit score, keep a close eye on your CIBIL report on a regular basis. If you have a strong credit score, it will be easier for you to apply for loans or credit cards. Knowing how to read CIBIL report can help you keep track of your repayment behaviour, look out for discrepancies and rectify them and understand what steps you should take to improve your credit score.
