What is a Credit Report?
A credit score is a measure of an applicant's ability to pay back the borrowed amount. It is the numerical representation of their creditworthiness.
A credit score is a 3-digit number that ranges between 300 –900; 300 known to be lowest and 900 known to be highest.
Typically, a Credit Score are calculated by credit bureaus in the country after taking into consideration various factors like the length of your credit history, repayment history and loan inquiries.
When you apply for any loan or credit card through bank or NBFCs, having a higher credit score may help applicant from benefiting higher loan amount, lower interest rate and flexibility on repayment option.
How are Credit Reports used?
A Credit Report aids lenders to decide whether the applicant has sufficient creditworthiness. The report also helps in determining at what interest rate a loan will be offered to them.
Why should you check your Credit report?
Check your credit report regularly to make sure that your financial information is up to date and accurate. It also aids you to check whether
Anybody's fraudulent accounts in your name or any other wrong entry took place. If you find any errors on your credit report, take steps to have them corrected.
How do you check your Credit report?
Check your credit report on a quarterly or yearly basis with any credit reporting agencies.
Some of the most popular agencies include Equifax, Experian and Transunion.