Your credit report contains information regarding your credit history. The report shows the kinds of credit that you use, whether or not the bills have been paid on time, status of your credit accounts, loan repayments and the duration for which your accounts have been open. A credit report gives lending institutions a full view of your credit history. Besides this, the report is used by the credit bureau to generate your credit score. Banks and other financial institutions will take credit score and report into account, along with other details, to determine if you are eligible for a loan.
Enquiry and account information are two important aspects of your report that are studied in great detail by financial institutions. The enquiry information contains details regarding your loan applications. If financial institutions see multiple enquiries have been made in a short period of time, they will be cautious about entering into an agreement with you. The reason being, multiple enquiries reflect a credit hungry behaviour, which is a put off for lending institutions. The account information section shows details concerning your credit facilities. It contains the name of the lending institution, account number, kinds of credit facilities, loan amount and EMI payments.
Besides the account information and enquiry information sections, a CIBIL report will also contain CIBIL score, personal information, contact information and employment information. CIBIL score is a three-digit number ranging from 300 to 900 and the closer the score is to 900, the better. The personal information section contains details regarding name, date of birth and identification proof such as PAN number, passport number etc. The contact information will contain the address and telephone numbers. And finally, the employment section will reveal your monthly as well as annual income.
Your CIBIL report will reveal a number of things about you to the financial institutions. It shows the lenders how well you manage finances, if you are financially disciplined, whether you can be trusted with repayments etc. They will determine your creditworthiness by what they see in your report. Hence it is very essential to maintain a healthy report and a good score. If you get the opportunity to avail freebies such as free credit report India or check my CIBIL score online free, make every use of it.
It is important to review your report just like you do for bank statements. Get into the practice of checking the report at least two or three times a year to avoid any unnecessary surprise. By regularly checking the report, not only can you spot errors (if any) and get them corrected, you can ensure that you do not fall victim to identity theft. If you see open accounts that you had nothing to do with, bring it to the notice of the credit bureau and the respective financial institution.
The Credit Information Bureau of India, at the moment, does not provide free credit reports. However, according to recent news articles, the bureau will soon begin to provide individuals with one free credit report a year. They are likely to begin doing so by the end of the year, according to news reports. The purpose behind this is to help people check their scores and raise a dispute if they spot any discrepancies.
While you may not be able to avail free credit report India from the credit bureau right this moment, you can check free credit report India from the website of Freescoreindia. Freescoreindia has tied up with Credit Sudhaar to provide free credit reports. I, as a client, can also check my CIBIL score online free through the company website. In order to check my CIBIL score online free, I would be required to provide basic information regarding name, email ID and contact number. The reason why I, as a client, am trying to check my CIBIL score online free also needs to be stated.
It is of utmost importance to check your score and report at regular intervals. Hence if you ever see the option to check free cibil report India or check my CIBIL score online free, do not let it go. Be wise and stay updated about what is in your credit records. Striving to maintain a healthy report and a score above 750 will help ensure that you have a smooth financial journey.