Why check credit report
Credit report can be considered as the report card of an individual’s financial status. Information pertaining to loans and credit cards of an individual is reported by lenders to Credit information bureau India limited or CIBIL which is the first credit information bureau in India. Credit report of a person contains personal details such as name, address, contact details, identity information such as PAN number, voter id etc. The total number of loans or credit cards an individual owns, their payment history, any late fee, bankruptcies filed by a person or the number of inquiries made for loans or credit cards are all included in the credit report. This information is used by banks and other financers to check the credit worthiness of a person.
Credit report plays a major role in getting approval for a loan or a credit card. Thus checking it on a regular basis is very important. Knowing where a person stands with respect to his/her credit score helps find the best loan solution. This also enables a person to get any errors rectified to minimize the effect they can have in future. Any suspicious inquiries on the credit report with respect to loans or credit cards should be checked as this may happen in case of identity theft. Credit card and bank accounts not closed properly may have balances in the form of annual fee or other bank charges which a person is not aware of. Checking reports on a regular basis can help identify these accounts and get them rectified.
