CIBIL Credit Report Checklist: The Complete Guide

When you decide to take any kind of loan or line of credit, you will come across the term "credit report". Every credit report is one of the primary components that every financial institution considers when deciding whether to approve or deny a loan. When you apply for a particular kind of loan, the loan providers check your credit report before offering approval or denial. It is important to know everything in detail about the credit report. If you are planning to take out a high-value loan anytime soon, it is essential for you to maintain a good ‘my credit score’. Do you know how to check credit score? Read to find out.

What is a credit report?

A credit report is a detailed summary of your entire financial and credit history. It takes into account all your transactions, credit activities, credit accounts, and transactions that are taking place. It is very important to maintain a good credit report if you are looking for an affordable high-value loan. By checking the credit report, the loan provider is able to determine whether you are a responsible borrower or not.  Know How to Calculate Business Loan EMI Online?.

What are the components of a credit report?

●  Payments are an important component of the credit report. It takes around 25% of the entire credit score to count. It plays an important role in determining whether you have a good credit score or not. Therefore, you should always keep a clean track record by making timely payments. Whether you are paying your monthly instalment of existing loans or credit card bills, you need to make the payment by the due date.

●  Credit accounts also take around 10% of the entire credit score percentage. Active credit accounts like existing loans and credit cards impact your credit report.

●  Credit mix is an important factor in your credit report. It is highly recommended that you saturate your credit profile with both unsecured and secured kinds of loans. Read Story : Do you know why the CIBIL score is important for personal lending?

●        The credit utilisation ratio takes around 25% of the entire credit score. If you exhaust 100% of the credit limit available to you, it will immediately damage your credit score.

●   The number of credit applications that you apply for plays a vital role in determining your credit report and credit score.

The significance of a credit report

●   Detect errors: When you check your credit report, it becomes very easy to detect errors and mistakes in your credit report. You need to detect the errors that damaged your credit score. When you do not detect errors, it will pull your credit score down. You need to find out the small mistakes in your credit report to find out the errors and mistakes in your credit report. When you report the mistakes, it will help in improving your credit report.

●   Gain information: A credit report is very informative. When you check your credit report, you can find all the details and information. It will help you find out all the relevant facts and information. There are various components and factors that you need to check. It will be easy to find the loopholes and gain a complete understanding of your credit report.

Wrapping up

How to check credit score? Clix Capital's website allows you to check ‘my credit score’. It will help you find your accurate credit score instantly.