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One-minute guide to understanding a credit report

One-minute guide to understanding a credit report
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First Published: Sun, Jan 10 2010. 09 15 PM IST
Updated: Sun, Jan 10 2010. 09 15 PM IST
0-15 seconds
What am I?
I am a record of all your credit activities—credit cards and loans (home, personal, education or more) you have and how regularly you make your payments. You can ask for me at www.cibil.com.
15-30 seconds
Who are my creators?
A credit bureau creates me by collecting information about all your credit activities from various lenders, stores it in a database and analyses it. It charges a fee for supplying this information, called the credit report. Banks buy this report from the bureau. You can also get a copy from them.
30-45 seconds
What’s a credit score?
Based on the information stored in me, the credit bureau assigns a score to me. A high score indicates that you are a good borrower and pay your dues on time, while a low rating shows that you are a bad borrower and don’t pay up on time. For lenders, a low score makes you a potential defaulter. You may find it difficult to get a loan, or get one at a higher interest rate and stricter terms.
45-60 seconds
Red flags about me
I may store even operational errors by banks. For instance, you may have paid off a loan, but the report may show otherwise. This can hit your credit score. You need to be proactive in getting such glitches corrected.
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First Published: Sun, Jan 10 2010. 09 15 PM IST