A credit score can tell your creditworthiness in numbers but a CRIF Credit Information Report can explain to you the numbers of the above.
Imagine, you’re applying for a new loan and you need a CRIF Credit Score. Higher the score like 700+ is higher the chances, and lower the score is lower the chances of getting a loan. But how is this score determined and why did you get the XYZ Credit Score? The answer is in your CRIF Credit Information Report.
What is a Credit Information Report?
In simple words, it is an explanation of whether you should be sanctioned a loan. A Credit Information Report, also known as CIR, is a detailed report based on your past loans, repayment performance, loan inquiries, and overall credit history to determine a strong case for or against permitting you a new loan.
While a Credit Score is a numerical representation of an individual’s creditworthiness based on their past credit performance, CIR is a detailed study of what this Credit Score means and how it may affect your chances of getting a loan. In other words, a CRIF Credit Score provides probability but CIR backs it up with analysis and explanation of your performance history. Both are essential to understanding your creditworthiness.
How is your Credit Information Report procured?
Normally, banks and other financial institutions submit a month-on-month record of their customers, both individuals, and companies, to Credit Bureaus. Credit Bureaus are companies licensed by the Reserve Bank of India to operate as Credit Information Companies. Since CRIF is an RBI-approved Credit Bureau, this information is highly confidential that assures it is only used for record keeping and retrieved when registered lenders, banks or other financial institutions enquire for a loan application.
What does a Credit Information Report include?
CIR is a detailed report that covers your-
· Personal information such as your full name, gender, date of birth, contact numbers, address, place of employment and various identification numbers like Voter ID, PAN, Passport, etc.
· Account history contains details of your current and past loans and credit accounts, including the type of accounts you own, creditor’s name, current balance, credit limit, etc.
· Inquiries that include your number of applications for a loan or credit card at a financial institution and
· Credit Score: A three-digit statistical number that evaluates your creditworthiness. The credit score ranges from 300-900. Any score above 700 is considered good.
Why is Credit Information Report important?
Just like your Credit Score, CIR helps you to get a new loan. But with CIR, you as an individual or a company can understand why your score is high/low, identify and rectify errors (if any), and predict the possibility of getting a loan early on. In simpler words, it gives you an answer beforehand so that you can take a wiser decision of whether to apply for a loan or not.
How often does a Credit Information Report change?
Since records usually get updated on a monthly basis with new data, it is recommended to keep a tab on your CIR regularly.
How can you maintain a good Credit Information Report?
CIR analyses your credit history and inquiries, so keeping your current repayment transactions on time and simply checking your CRIF CIR and Credit Score regularly is a must. Besides disciplining your credit behavior like paying EMI’s and card dues on time, keeping your credit card balances low, managing your debt(s), limiting applications for new credit, etc. are some other useful ways to ensure you maintain a good Credit Score and Credit Information Report.
To check your current CRIF Credit Information Report,
Click HERE.
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