Tips to Read a Credit Report
Depending on the credit score in your credit report, banks and lenders shall take decision about providing you credit or not. You must make sure that your credit history remains cleans. There are lot many sections in a credit report with due significance for each. Your credit health is well scrutinized before approving loan applications.
Here are tips on how to analyze your CIBIL credit report:
The report will contain information about your contact (addresses of residence or workplace, email ids and phone numbers)/personal (passport number, your name, date of birth, voter ID, PAN number)/employment (employers and income during loan or credit card application).
In the credit report, information will surface about your account details (open loan, credit card, details of lender like date of initiation, name, date of last payment, joint or individual account holder type, total outstanding amount, loan amount paid, bills paid and more).
If there is a red band on any information in credit report, it means that the subject is under dispute and you can discuss with the bank about the same to sort out any errors.
Your CIR could depict a CIBIL TransUnion Score. The score here is between 300 and 900, which is percentile figure of over past one year for a special financial band. If the score is below 300, then it indicates a very bad credit health, and can be tagged as NH or NA. In case there have been no credit transactions over past few years, even then the status of score could be NA or NH.
Credit report also reveals how many credit enquiries you have made over a period of time. With help of your CIR, you will come to know who has you on their avoidance/prospective customers' list.
Important Terms in CIBIL Credit Report
- CN: Control number revealed at the top of CIR, which is utilized as reference for raising dispute with CIBIL or obtaining report in future.
- DPD: Days Past Due tells the number of days since the payment due date. Indication other than 'XXX' or '000' is considered negative.
- Written Off Amount: It is the amount on loan or credit card, which has been lost to the loan taker. The effect of this status is bad on credit score.
- Settlement Amount: It is the amount which you will pay to lender, normally lesser than the actual loan amount to be paid. The situation arises on disputed payment, and has a negative impression on credit score.