A credit report is a comprehensive chronicle of an individual’s credit history. Credit reports are generated by credit bureaus. Credit bureaus use the large amounts of data (on various facilities) available with them to generate these reports.
Included in your credit report is a historical record of how and when you pay your bills, how much debt you have, and how long you have been managing credit accounts.
Lenders and other companies may use your credit report to learn more about your previous borrowing experience, which helps them make decisions about granting you credit. Credit reports are also used to calculate your credit scores, verify your identity and for other purposes within certain limits defined under CIC Act.
Most people have more than one credit report. Credit reporting companies, also known as credit bureaus or consumer reporting agencies, collect and store financial data about you that is submitted to them by creditors, such as lenders, credit card companies, and other financial companies. Creditors are not required to report to every credit reporting company.
Creditors may weigh the various aspects of your credit history differently, but each one is hoping to answer the same question: if I give this person a loan or extend them credit, are they trustworthy enough to pay me back?
A Credit Report has two primary objectives:
- To capture and collate all details pertaining to an individual’s credit accounts.
- To generate a score based on the account details.
