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How Can Customers Check their Credit History

Credit cards are one of those financial products that have redefined the structure of the financial world. These plastic cards allow individuals to borrow a certain amount of money against a line of credit and repay the same every month. There is a set limit that is imposed on the cardholder and they will not be able to spend more than this. In addition to allowing individuals to borrow money, they will be able to avail other benefits and perks such as fuel surcharge waiver, dining discounts, travel offers and so on, based on the credit card.

If used judiciously, credit cards can benefit an individual enormously as it can increase their credit score and subsequently their creditworthiness. Individuals who have a high credit score will not have to face any hassles if they wish to avail a loan. Individuals with a good credit report and high credit scores can also procure loans at interest rates and tenures of their choosing.

Credit card users receive a credit report which contains details of their credit card transactions such as credit score, account details, contact information and so on. A credit history is nothing but a record of the cardholder’s transactions pertaining to their credit card(s), such as the number of credit cards they have, their debts, if any, if they pay their bills on time and so on. It records the individual’s responsibility in repaying his/her debt. A credit report is essentially a summary of the cardholder’s credit history and information in this report is procured from a variety of sources, including credit card companies, banks, governments and collection agencies.

Another term that is generally used when it comes to an individual’s credit card transactions is, credit score. A credit score is a 3 digit numeric summary of an individual’s credit report. This score is between 300 to 900 and score above 760 is considered to be good. A healthy credit score is a sign of having good creditworthiness. These individuals are seen to be less risky in terms of repaying debts and hence receive loans quite easily. This credit score is derived from a particular mathematical algorithm and predicts future delinquency.

How can Individuals Check their Credit History?

Customers can check their credit history by procuring their Credit Report. Individuals will have to apply to any one of the three credit rating agencies in India - Equifax, Experian or CIBIL. CIBIL is generally the most sought after bureau due to the fact that it is the oldest credit information bureau in India. This credit report will have a summary of the individuals loan related transactions and every credit card account that they have had or have currently. In other words, it is a summary of the individual’s financial history. Based on the information provided in the credit report, the individual’s credit score is calculated.

Process to Check Credit History

Customers can understand their credit history by procuring their credit report. This can be done by following the process given below -

  • Applicants will have to first visit CIBIL’s website and apply online for their credit report.
  • They will have to then provide the required documents - a proof of identity and a proof of address.
  • Proof of identity can be any one of the following -
    • PAN card
    • Passport
    • Aadhaar card
    • Ration Card
  • Proof of address can be any one of the following -
    • Passport
    • Electoral Photo Identity Card
    • Utility Bills
    • Aadhaar card
  • The above documents will have to be scanned and uploaded.
  • Applicants will have to then pay for their report online.
  • Within one day, applicants will receive their credit report by email, as long as the document has been verified and the payment has been received.

Once applicants receive their credit report, they will know their credit score. This score will give applicants an idea regarding their eligibility for loans. In case their score is above 750, there is a good chance that they will receive loans without many hassles and at an interest rate that is economical. If the score is below this, their credit history is not very strong and will have to be improved at the earliest. Having a score below 750 can result in the loan application getting rejected and scores dropping ever lower.

Once applicants receive their credit score, they must work to ensure that the score is high at all times.

News About How Can Customers Check their Credit History

  • Public Credit Registry Will Enable Home Loan Access to SMB says, RBI Deputy Governor

    RBI Deputy Governor Viral Acharya has stated that the Public Credit Registry (PCR) will enable access to credit for micro-entrepreneurs. The PCR is expected to balance the information asymmetries and pave the way for greater financial inclusion. The registry could enable sanction of small ticket loans of short maturities that may not require collateral. The aim of the PCR is to enable quick access of credit to the micro and small enterprises. The SMB are currently not included in the formal credit market. In June 2018, the RBI said that it had decided to set up the PCR in a phased manner following recommendations of a committee headed by YM Deosthalee. The central bank has invited ‘Expressions of Interest’ from qualified vendors for implementing the PCR. 

    25 January 2019

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