A credit report is a detailed summary of someone's financial history, focusing on borrowing and repaying money.
Credit bureaus or reporting agencies compile it and include information such as:
A Credit Score is an integral part of anyone’s financial status. It is a three-digit number from 300 to 900 that shows if someone can pay back loans or debt. Financial institutions often base this number on the consumer's repayment and credit history. Let us learn about the different credit score ranges and what they mean.
A credit score of 750 to 900 is considered excellent. It shows a consistent payment history and a great payment track record. If you come under this score, your credit application may get approved quickly, resulting in a good loan offer. This means it will be easier for you to get loans and credit cards.
Chances of loan approval
A Credit report is a comprehensive overview of a person's credit history. It contains information about their borrowing activities in the credit sector.
CRAs keep track of a person's borrowing activities. They use this information to calculate their credit score and it ranges from 300 to 900.
We let you access your credit report from anywhere and at any time. There is no restriction on accessing credit reports through web browsers or mobile phones. How convenient is that?
So, are you planning to secure a loan for yourself or your family? Have you ever checked your credit report before? Getting to know your credit score has never been so easy and so affordable. It will take you a mere two minutes to get to know your entire credit history.
If you want more details on this matter, don’t forget to get in touch with our experts right away! We are here as the helping hand you require for all your lending needs.
Credit scores are indicators that allow a financial institution to assess your ability to repay the debt on time. The credit score is thus crucial in determining the risk of an individual or an asset.
A credit score is a comprehensive document prepared by a credit bureau that outlines your credit history. These credit bureaus gather and assess your financial information and prepare reports based on such details.
When computing your Credit score, we consider the following factors.
Maintaining a high Credit Score has plenty of benefits, from more lender choices to low-interest rates. Let’s check these benefits in detail:
You can get an online credit report easily. Additionally, there are many benefits to checking your credit score. These include:
The table below outlines the key differences between a credit score, credit report, and credit rating.
|It is a comprehensive, summarized copy of your credit history and resembles your creditworthiness. Most lenders use this document as your credit reference.
|It is a 3-digit summarized version of your credit report. It considers all the information on the report, measures your credit risk, and computes an overall score ranging between 300-900.
|After determining whether you can fulfil your financial commitments, credit bureaus provide credit ratings to businesses and even governments. Credit ratings show lenders how likely you’re to repay loans.
|NA or NH
|NA stands for Not Applicable, and NH stands for No History. NA in your credit report means there is no information available about your credit history. Since the report does not include any credit information, we also refer to it as NH.
|STD in credit report stands for ‘Standard.’ You’ll find this term in your loan accounts and credit report. In your report, `STD` indicates that you have paid all outstanding amounts within 90 days, or on the due date.
|SMA stands for Special Mention Account. This indicates that we have established a designated account to record Standard Accounts that have shifted to Sub-Standard. In such cases, we receive payments after 90 days of the due date.
|DBT here stands for Doubtful. It means that one of your loan accounts has stayed/remained as a Sub-Standard account for a year (12 months).
|It stands for Loss. It implies that we have detected a loss in one of your accounts. LSS on your credit report means that you haven’t paid that loss amount, and it’s still uncollectible.
|The full form of DPD is Day Past Dues. It serves as a track of your credit accounts’ payment schedules. The DPD area shows your payment, even though it is one day late. You can model DPD in one of two ways: Note or Numeric.
It is natural for your credit score to keep changing over time. Your credit score changes when new information is sent to the three national consumer reporting agencies (CRAs).
Piramal Finance offers personal loans to applicants who have a credit score above 650.
No. Not everyone can view your credit report.
To perform a credit report check, you require a PAN card since the credit score links to the PAN card number. Also, individuals need PAN cards for tax return filing and address verification.
A hard credit query may lower your credit score by up to 10 points. This harm may not always be that severe.
A Credit report is a useful tool for banks and NBFCs. It helps them to assess an individual's reliability and creditworthiness. This helps them to determine their ability to repay any debts in a timely manner. The significance of the credit score thus lies in the individual’s risk assessment.
Unfavourable data that is true cannot be changed and usually stays on your credit reports for seven years. Creditors look at your Credit reports to evaluate your past debt repayment history. They use this information to decide if they will give you credit and what terms to offer.
To fix a mistake in your credit report, start by telling the credit agency about the wrong information. You must provide copies of supporting documents and a written explanation of your claim.
Prospective lenders, present creditors, insurance providers, and occasionally even your employer can check your credit score. These individuals and institutions have the authority to examine your credit history. They can do so when you request credit or after they have granted you a loan or credit.