Understanding Your Credit Report

Understanding Your Credit Report

Ever wondered why you were denied that car loan you applied for last month or the house loan that was not approved? The reason could be a ‘bad credit score’. It is not difficult to lose your credit points and a small delay in bill payment or untimely settlement of debts can have grave effects on your overall credit score. Even if you had a good credit score a few months ago, the figures will plummet before you know it. It is, therefore, highly crucial to understand the key aspects of your credit report.

Understanding your credit and what influences it is the key to having a better credit score. Once you gain complete knowledge about the subject, maintaining it will just be a cakewalk.

What is a CIR (credit information report)

While a credit report is the numeric summary of your credit history, a CIR or Credit Information Report is an account of the entire payment history of the individual. This has been calculated from the time you first received your Cibil TransUnion Score, another name for credit score.

What constitutes your CIR

Your CIR is the assortment of the Cibil TransUnion Score, and other important details of employment, bank accounts, credit cards, etc. Below are the key sections in detail.

  • Cibil TransUnion Score – A credit score ranges between 300-900. A score above 700 is considered good
  • Personal details – Contains complete and authentic personal information, address and telephone details
  • Employment details – Income details that have been earned by you as an employee
  • Account Information – Details of all the credit facilities and banking transactions related to your account such as account numbers, ownership details, date of last payment, loan amount, loan details, current balance, and so on.Every time you are applying for a loan, the respective lender or institution accesses your CIR. Understand your credit report and make sure that these elements are always up-to-date.

Know about Credit Bureaus

One important thing to know when developing an understanding of your credit report is the Credit Bureaus.  Credit Bureaus are the bodies that keep a track of your entire financial history, along with the credit report to date. Three major credit bureaus are involved in the process – Equifax, TransUnion, and Experian.

FICO Score

FICO or the Fair Issac Corporates creates a credit score for every individual that is used by top lenders while they consider offering credits.

Summary:  Understanding Your Credit Report

Each lender has its own strategy to assess that helps them decide whether the concerned candidate is suitable to receive a credit. If you identify the areas that these lenders use in order to assess your credibility, you can easily sort them and work towards their improvement. Once you get a better hold of these key aspects, you can easily create a good credit score.

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