One-minute guide to understanding a credit report

One-minute guide to understanding a credit report

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

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.