What you should know before applying for free credit reports

12-Oct-2018 written by : FSI-Team

Applying for free credit reports

A credit report is a report which has the information of an individual's credit information in detail. Credit score, all the credits that have been taken till date, the payments that have been made, accounts that have been closed, pending, ongoing, defaults, late payments, in short, all that has been from the day credit was issued till date including the hard inquiries.

There are four bureaus in India that help an Individual get their credit report. Transunion CIBIL (Credit Information Bureau India Limited was the first bureau that was established in India in association with Transunion (An American Bureau). Then Experian, Equifax, and CRIF Highmark were also established.

According to RBI (Reserve Bank of India)rule that was passed in 2016, each credit bureau is entitled to give one free credit report per year to an individual. Anyone can go on the direct website of these bureaus and apply for a free credit report. Before getting into things to know about free reports, let us know why it is important to check the report. It is advised to check the credit report twice each year. The major reason is to be assured if everything is correct. As explained, a report has all the information related to credit, one may understand the credits used by them. If there are any missed or late payments because of which the score is decreasing. Or if there is any entry of the credit which a person does not recognize that is made by them. Also, the multiple inquiries of that one may have done for credits may cause a dip in the score. But what id they are not made by them and there is some error, in all these cases a regular check on report helps them understand. Also, in the digital era, identity theft is very common. People may have used the information and got the credit approved for them and would not be paying the amount making the score low for the person. So in that case, one may file a dispute. Only the regular check will ensure this.

Sometimes when the person is trying to improve cibil score as it was bad, the regular check will help them evaluate the report in order to analyze is everything is going perfectly. And if there are any flaws they can rework on the credit pattern and use a different technique to get the score perfect. If they may not evaluate and understand what is not perfect they may take an advice from professional credit health managing organizations like Credit Sudhaar. These were the basic reasons why one should check the credit report on a regular basis. Now, let us understand what all to know before applying for reports.

  1. The first and the foremost thing is to understand that may it be free credit report or the paid one, there will not be any difference in the report. Some may think that because it is a free report, it might not be accurate. But that’s not true.
  2. Do not check the report just out of the curiosity if to see that paid and free reports are the same.
  3. Do not enter any information that is incorrect, as it will be a hazardous issue for the individual only.
  4. A free credit report is not anything to apply with the thought of letting us get it as it is free, it holds too much important value.
  5. Go to the website of any of the bureau and there will be an option which says "free credit report" click that and enter the information that is asked for.

Remember, nothing is impossible. If the score has dropped and an individual is trying to improve cibil score with all the basic rules that are to be followed, the score will definitely increase. All that is to be kept is patience!



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