Current Balance (Old due) It is the amount you still owe on a particular credit facility. Lenders typically take 30–45 days after payment is received to update this information to the Credit Bureau. For example, You have taken a two wheeler loan of Rs. 50,000 in 2011 and as on today’s date if some amount […]

Negative Flags in your report is a proof of some past mistakes which can ruin your future plan. Regardless of the fact that the negative error occurred due to your mistake or negligence on part of Credit Bureau, you must take measurable action to rectify it because credit report affects the most important financial measure […]

Reasons to check your credit report Let’s see here some quick on reasons which is why you should check your credit report It’s an important step in rebuilding and maintaining good credit score It’s an important part of managing your personal finance It’s the first step in correcting any information you feel is inaccurate, that […]

With the growth of technology and advance computing of data collection in 1970s, the modern credit reporting industry was born. This made work efficient and cost effective. Credit reporting is meant earlier for lenders, but it helps consumers as well. In 1971, Fair Credit Reporting Act was passed in the US to ensure the “accuracy, […]

Earlier credit reporting was not a part of any financial system. In the 5000 year history of debt, credit reporting has been a deeply personal practice but eventually around 1700s, credit reporting came into picture. The first recorded group that shared credit information about consumers was the colorfully named “Society of Guardians for the Protection […]

Capacity Capacity measures the capacity or capability of the individual/ business to repay the loan amount in time. It is the first step for any credit application to get reviewed positively. In case the applicant does not have capacity to repay, chances arehigher that the lending institution will reject the application or review it for […]

In simple language, the term “credit underwriting” in banking means a process of assessing risk involved while lending to a person or business. The underwriting process directly evaluates your finances and past credit decisions. The person who is involved in the underwriting process is called an underwriter and the underwriter is responsible for deciding whether […]

Credit is not of one type and has different purposes to use it in different verticals of life and business. There are primarily two types of credit which is, Secured Credit means the credit that requires you to pledge something of value in order to secure the loan. In banking terms, this is called collateral. For […]

In earlier phases lending and borrowing depended on personal approach which meant possibility of bias gesture was part of it. In ancient Greece and Rome around 3000 years ago, the lending system originated and pawnbrokers lent by collecting collaterals from the borrowers, to reduce the risk of the lenders. This system was followed by an […]

The World Bank has supported the development of credit reporting systems around the world for more than decades. The International Finance Corporation’s Credit Bureau Knowledge Guide (IFC 2006) provides an overview of experiences in developing the capabilities of private credit reporting institutions through public private partnerships and institutional innovation. The World Bank’s General Principles for Credit Reporting […]