Credit Information Report (CIR), commonly known as Credit Report is a detailed report of your past credit behaviour. It summarizes the present and past repayment performance of an individual. It displays the complete analysis of your credit health and capacity to borrow. Credit score is one of the most important components of CIR that ranges from 300-900. These reports are generated by India’s all 4 leading Credit Information Companies (CICs) or Credit Bureaus, named as TransUnion CIBIL, Experian, Equifax and CRIF High Mark. All these four CICs collect and consolidate consumer credit information, as provided to them from various member financial institutions, including banks, NBFCs, etc.
As licensed and directed by the RBI, you can check free credit score, once a year from each credit bureau. Therefore, it is highly recommended for you to monitor your credit report from time to time to check for errors and resolve them at the earliest.
Components of Credit Information Report
Understanding your Credit Information Report is as important as maintaining a healthy credit score. Read on to get some useful information related to your Credit Information Report, credit score range and ways to improve it.
Sections in Credit Report
Credit Score: Most vital component of your credit report is a credit score that ranges from 300-900. Your credit score defines your creditworthiness and ability to avail any further credit. Lenders do check your credit score before any new credit application approval. Maintain your credit score above 750 to avail several borrowing benefits. Lower credit score limits the chances of loan or credit card approval. Ideally, you should maintain a healthy credit score of 750 and above.
Personal Information: This section consists of your gender, full name, date of birth, and identification numbers, such as PAN, passport details, etc.
Occupation Information: It offers information related to your profession, income and employment status, as recorded at the time of availing loan.
Account Information: This section holds the most importance, as it contains information related to your past and existing credit cards and loans. This helps lenders check the exact status of payment history along with other related details, such as overdue amount, Days Past Due (DPD), credit utilization, collateral details, etc.
Enquiry Information: Enquiry section holds the details about the lender’s enquiries for your credit product application from the credit bureau at the time of approval process. The information includes the lender’s name, account number, credit product type, your name, etc.
Credit Score Range
Credit Bureaus use the below mentioned score ranges to depict the creditworthiness of a consumer that further helps the lenders in evaluating your credit applications related to loans and credit cards.
|Credit Score Range||Category|
|300-550||Very Low Credit Score|
|551-620||Low Credit Score|
|621-700||Fair Credit Score|
|701-749||Good Credit Score|
|750+||Excellent Credit Score|
Ways to Improve your Credit Information Report
Credit score should be healthy enough to help you avail loans or credit cards at times of your urgent needs. Follow these key measures to improve your credit score, as well as maintain a good credit information report:
- Pay all your loan EMIs and Credit Card dues in time
- Monitor your credit report regularly for errors and resolve them at the earliest
- Do not apply for multiple credit facilities in short-duration or simultaneously
- Maintain healthy balance between unsecured and secured loans
- Avoid becoming a co-applicant or guarantor for a loan
- Opt for secured loans and credit card, if New to Credit or with no credit history
Any delay in loan EMI or credit card due can definitely lower your credit score. So, it is recommended to check your credit score regularly for errors and rectify them immediately by raising a dispute with the relevant credit bureau. The best way to improve your credit score is use your credit facilities judiciously by primarily paying your loan EMIs and credit card dues in time. Healthy CIR holds the key for hassle-free loan approval, as high the credit score is; more are the chances of loan approval. Maintain a good credit score and avail various loan and credit card benefits.