Simple ways to understand your credit report better

According to a survey conducted recently, it was found out that a magnanimous 97% of the Indian population was absolutely oblivious of their credit score. In fact they hardly know that something as highly important as a credit report exists and to what extent it can influence their future financial health. This reflects the fact that the credit health sector is at a very nascent state and has a lot of ground work to do before people starts taking it seriously. There are many technical terminologies that go into improving your credit health and it is impossible to understand them all at once.

So the question arises as to how to read your credit report so that you can easily understand it.

To begin with, there is the credit score which is a numeric digit and is within the range of 300 to 900 points. Your credit score will be anywhere in between but what you should be knowing is that it should be on the right side of the scale between 800 to 900 points to be considered it a satisfactory credit score. The need to have a good credit score arises when you apply for loans, credit cards, telephone connection, search rented accommodation or even while applying for jobs. You get a lot of benefits like lower interest rates, timely approval of loans and cards if you furnish a good credit report. In simple terms, the credit rating shows how dependable you are when it comes to repaying your debts.

Now you might be thinking who compiles this information and how do they get hold of it? Well, there are credit bureaus that are in charge of your credit reports and they collate all your credit information through banks, lenders, credit card companies, land lords, and everywhere else with whom you have had a financial history. This information is cross checked by everyone who lends credit to you. If you had a decent history of timely repayment of loans, bill payments and most importantly, you are not bankrupt, then surely you will pass as a responsible person.

Cibil, Equifax, Experian are some of the main credit bureaus through which you can get a copy of your credit report. Generally, your credit report will include your personal information like full name, present, previous and permanent address, date of birth, contact number, Email address, PAN card number and even places of employment. Other than this, the report has details about your credit information like a list of active and closed accounts, account numbers, your monthly payment and payment history. The report also contains the names of companies and individuals who have made inquiries about your credit in the last two years.

The public records section will include information like bankruptcies, judgments, foreclosures, tax liens, state and country court records. Only severe financial blunders appear in this section, not criminal arrests or convictions. Because public records can severely damage your credit, it's best to keep this section clear. Your account history will be very detailed, but it's important that you go through it thoroughly to make sure the information is being reported correctly and see that there are no errors in it. An erroneous credit report will cost your dearly in the long run.

It is not very difficult to get your Cibil credit report and applying for it online is the easiest way out. Just fill in the form after logging in their official site www.cibil.com and pay Rs. 470 only. Your online credit report will be sent to your email address within no time.

Once your report is in your hand, take your time to go through it properly. If you find that your credit rating is not up to the mark, do not panic. There are many credit health improvement companies that will help you to better your score. Credit Sudhaar, India’s premier and most reliable credit health improvement company, can be the ladder that bridges the gap between your poor score to a high scoring credit rating. In fact, the company is considered to have single handedly brought to light the importance of credit health amongst the masses.

A dedicated team of specialist who have commendable experience in the credit, banking and financial sector for the last years or more will happily assist you in your venture towards a secured credit future. You can always take their valuable advice and wisdom if you have any doubts or confusion regarding your credit rating.