Your credit report is like a financial report card that lenders review before granting you a loan or credit card. It plays a crucial role in determining whether your application will be approved or rejected. To help you stay on top of your financial game, make the most of this comprehensive credit report checklist. Follow these steps before you apply for credit to ensure a smoother process and better chances of approval.
Request your CIBIL report
The first step in the process is to obtain a copy of your CIBIL report. You can request it online through the official TransUnion CIBIL website. Ensure that all your personal information, such as name, address, and contact details, are accurate and up to date.
Verify account information
Check your credit accounts listed in the report. Ensure that all the credit accounts, including credit cards, loans, and mortgages, are accurate and belong to you. If you notice any discrepancies or accounts that don't belong to you, report them to TransUnion CIBIL for rectification.
Review payment history
The payment history section is crucial for your credit score. Analyse your past payment behaviour for any late payments, defaults, or settlements. Consistent, on-time payments positively impact your creditworthiness.
Assess credit utilisation
Credit utilisation refers to the percentage of available credit that you are currently using. Aim to keep your credit utilisation below 30% to demonstrate responsible credit management and improve your credit score.
Check for hard enquiries
Every time you apply for credit, lenders perform hard enquiries on your CIBIL report. Multiple hard enquiries within a short period can lower your credit score. Limit credit applications to only when necessary.
Address public records
Review the public records section for any legal or financial judgements against you, such as bankruptcies, court judgements, or tax liens. If any information is incorrect, take steps to rectify it promptly.
Evaluate credit mix
A diverse credit mix that includes a mix of secured and unsecured credit can positively impact your credit score. Evaluate your credit mix and consider diversifying if needed.
Monitor credit score trends
Track your credit score trends over time to identify improvements or potential issues. Regular monitoring helps you understand your financial standing and motivates you to maintain a healthy credit score.
Dispute errors if necessary
If you spot any errors or inaccuracies in your CIBIL report, dispute them immediately. TransUnion CIBIL provides a mechanism for reporting and rectifying discrepancies through their website.
Understand factors impacting your score
Educate yourself about the factors that influence your credit score. Timely payments, credit utilisation, credit history, and credit enquiries all play significant roles in determining your creditworthiness.
Free credit score: How and where to check it?
Your credit score, also known as the CIBIL Score, is a crucial aspect that lenders use to assess your creditworthiness. TransUnion offers one free credit report annually via their official website, but you can check your CIBIL Score every month for free with your Bajaj Finserv Credit Pass membership. What’s more, your Credit Pass membership allows you to track your Credit Health Report in real time for a hassle-free and seamless credit monitoring experience. Sign up today and take advantage of the limited time offer of free access to Credit Pass benefits for a full year!
