Advantages and Hacks from the CIBIL Report!
Equifax is India's Credit Information Company or Credit Bureau, better known to most people as Equifax credit score. It is in charge of keeping track of all credit-related activity for both individuals and businesses, including loans and credit cards.
The CIBIL report is de-mystified!
Continue reading: How often is Cibil's score updated?
A credit report is a comprehensive document that comprises information about a person's or company's borrowing history and repayment history. It provides a complete picture of an individual's (or a company's) creditworthiness based on previous and present credit behaviour to potential lenders. When lenders receive new credit applications, it allows them to quickly access accurate information. It enables them to assess the situation and make a more timely and transparent loan choice.
In India, there are four authorised credit bureaus that can issue a credit report. CIBILTM, Equifax, CRIF High Mark, and Experian are the companies involved. Credit bureaus are in charge of collecting and keeping track of people's credit-related transactions as reported by their lenders (whether banks, NBFCs or credit card companies). This information could contain information about all loan and credit card payments, as well as any late or missed payments. It could also include information about lender enquiries into previous loan or credit card applications, as well as all existing loans and credit cards, total credit limit, and other credit-related information.
A credit report is a consolidated and complete record that details an individual's credit history with several lenders over a long period of time. It's a terrific approach to figure out where you stand and how much you need to improve your CIBIL score to get a loan without any problems. The following information will be included in your credit report:
(a) Personal information such as name, age, gender, address, and so forth.
(b) Employment and income information
(c) Number of hard queries made by potential lenders after receiving your loan/credit card application
(d) Information on previous and current loans, including payment history
(e) Any loan defaults
(f)Any credit card payment defaults that have happened
(g) Your overall credit limit and monthly spending (Credit Utilisation Ratio)
(h) Your credit score is the most essential part of your credit report since it tells potential lenders how creditworthy you are.
Analysing the CIBIL Report
If your credit score is poor, your loan application may be turned down. As a result, it's critical to understand how to enhance your CIBIL score right away. Here are some fast fixes for improving your CIBIL score:
(i) I Look for any reporting errors or other probable inaccurate inputs that may be lowering your CIBIL score unnecessarily. If you find any errors, you must immediately file a dispute resolution with the bureau to get the problem resolved. This can help you swiftly boost your CIBIL score.
(ii) Keep your credit card balance as low as possible.
(iii) Try to keep your credit card usage to a minimum. Reduce by at least 50% to significantly improve your CIBIL score.
(iv) Don't miss any payment dates because it will affect your credit score badly.
