Now That I Got My Free Credit Report, What's next?

26-Feb-2018 written by : FSI-Team

After 15 years of credit bureau getting established in India, the awareness on importance of credit score has started growing steadily. While there is still a lot more ground to be covered, but, at least the general population in larger cities are becoming savvy on this important aspect of financial life. Increased efforts from various entities including the credit bureaus through awareness campaigns and advertisements more and more people are reaching out to obtain their reports from the bureau.

As per the guideline issued by the Reserve Bank of India, all credit bureaus in India are obliged to extend a free credit report to all consumers once a year. People have started taking advantage of this and are withdrawing their reports. However, once they have been able to obtain one, they are in a fix on what exactly are they required to do. Following are the next steps that one should be undertaking once access to report has been gained.

Check the score

Your credit score is reflection of your credit health. Depicted in numeric term, the score ranges from 300 to 900 in India. Higher score represents better health. Generally a score of 750 and above is deemed to be a good score. While a lower score can be a cause of concern, but one need to clearly distinguish between a good or a bad score.

The score is based on one's past performance. In case someone is new to credit or has not been exposed to loans in recent past on account of no such requirement the score may be low or may not even be there. This should not put one on panic trail.

However, in case the score is low on account of past defaults, then one would be required to work upon the improvement so as he becomes eligible for credit facilities for banks.

Check on the available data

The bureau report predominantly has following three sections:

  • 1. Personal details This section carries your name, address, contact details, employment, IDs submitted at the time of borrowing etc.
  • 2. Trade line details Under this section history of all kinds of credit facilities gets captured. The lending institution's name, type of loan, term of loan, rate of interest, outstanding, repayment pattern of last 36 months etc
  • 3. Enquiry details Every time one applies for a loan, the bank runs an enquiry on the bureau that gets captured on the report

One needs to check out on the errors on the data reflecting on the report. As per Credit Sudhaar's assessment 1 of 4 reports have an error. And the errors can be the reason for a low CIBIL score.

In case an error is found then the dispute needs to be raised with the bureau and the concerned bank.

Identity theft

Awareness on this growing menace is miniscule. If you find a trade line (a loan or a credit card) that you have never taken reflecting in your report, the chances of your being a victim of identity theft cannot be ruled out.

Also, if you find a lot of enquiries reported for credit facilities that you never applied for again you could be susceptible to identity theft.

Professional help

In case you do get victimized of identity theft, seek professional help immediately. This will only help in reducing the risk and taking corrective measures to deal with the situation.

In case you are unable to decipher the report and understand what it means to you, again, it is advisable to reach out to a professional who can help you on this.



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