Getting a credit report is easy, but reading the report can be tricky

Your credit report is the very first thing the lender will check if you are applying for a credit line. You will have to make sure that you are up to the mark when it comes to the credit score while applying for a loan or else there are high chances that your loan plea may get rejected.

But, is it always your fault that your credit score is on the lower side. Let us take this scenario that you are in urgent need to cash and you apply for a personal loan. You are confident that your loan will be sanctioned within the given time frame and you will be able to fight the crises you are facing. You get a call from the lender stating that your loan plea has been rejected, reason being a low cibil score. You are shell shocked that you have always maintained financial integrity and this is something you never expected to happen on your part.

You get the cibil report and find a lot of information in there. You do not know how to analyze and see where it all went wrong and you ended up on the lower side of the score. This is the trickiest part of every person who is accessing their credit report for the first time. There is a lot of information which you need to analyze and check if you are in the right path.

We, today will sight you what to check and how to check your credit score,

Credit Score

Immediately after you open your credit sheet, the very first thing which you see in bold letters is your credit score. The credit score ranges between 300-900 points. Any score which is 750+ is considered to be an excellent score which can help you get a loan or a financial product with ease. Higher the score, higher are you chances to get a loan approved and various financial institutions begging you to buy their loans.

Personal Information

The next information which you see is your personal information like name, age, address, PAN details, etc. Make sure the information displayed is accurate. If you find any spelling mistakes in your name on the report, make sure to send an email to the credit bureau with attaching necessary documents to support your plea.

Employment history

Whenever you apply for a loan or a credit card, the bank always asks for your employment information. If you happen to be in a different organization when you are applying for a loan than the last time, that information is updated on your report. If you are employed in a reputed company, there are high chances of the loan getting sanctioned in no time.

Credit accounts and repayment history

Now you have landed to the most important section of the credit report. This section contains all the information regarding your accounts and your payment history. Even if you have skipped one payment, the bank registers the same and is sent to the credit bureaus. There are high chances that the information which you see may be inaccurate, if that is the case, you can raise a dispute with the credit bureau and get it sorted. This process will take time but at least you won’t end up having a low cibil score.

Credit Inquiries

Then the last section consists of various credit inquiries you have made on your report. Only the hard inquiries are counted in this section. You downloading your own report will not be reflected on this section.

A report reading is always a tricky part. If you fail to understand the credit terms, make sure you seek financial advisory help to get things sorted.

 

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