In today's financial world, understanding credit information reports is crucial for individuals who want to apply for credit and manage their finances effectively. One company that plays a significant role in providing credit reports and scores is Experian.
At Shriram Finance, we understand the importance of credit information in making informed financial decisions. We offer a wide range of credit solutions, including loans for commercial vehicles, two-wheelers, cars, homes, gold, personal finances, and small businesses. Additionally, we provide both fixed investment plan and fixed deposits. If you have the need for a personal loan, get favourable interest rates and loan terms with us. Apply now.
In this article, we will delve into the details of understanding credit information reports and how they can impact various aspects of your personal finance.
Experian Credit Information Report
An Experian credit information report is a comprehensive summary of an individual's credit history, including your Experian credit score. Additionally, the Experian credit report contains essential information such as loans, credit cards, repayment history, and recent inquiries made by potential lenders or creditors.
You can access your Experian credit report through approved members and store it with Experian Credit Information Company of India Private Ltd. When you apply for credit from these approved members in the future, they will access your credit information report to evaluate your creditworthiness on the basis of your Experian credit score. The Experian report plays a crucial role in determining approval of your credit and associated terms.
Experian Credit Score
The Experian credit score is a numerical representation of an individual's creditworthiness. It is derived from a summary of different aspects of their credit history included in the credit information report. The higher your credit score, the more favourable you are as a credit customer to banks and other lending institutions.
Your credit score can be impacted by various elements, such as the recentness of any defaults on credit accounts, your history of making timely payments on both overdue and current credit accounts, the status of delinquencies on your credit accounts, and any recent credit applications you've made. You can increase your chances of obtaining credit at favourable interest rates and with better terms by maintaining a good credit score.
What Is Experian Credit Information Company?
Experian Credit Information Company is a joint venture between Experian and several prominent Indian banks. It operates in accordance with the Credit Information Companies (Regulation) Act, 2005. The company provides credit information services to lenders and helps them make informed decisions by providing accurate and up-to-date credit data.
Role of Credit Information Companies
Credit information companies like Experian play a crucial role in the financial industry by facilitating access to accurate and reliable credit data. Lenders rely on these companies to assess an individual's creditworthiness before granting them loans or issuing credit cards. By leveraging this data, lenders can minimise their risk exposure while maximising revenue through efficient decision-making.
Benefits of the Experian Credit Information Report
The Experian credit information report offers numerous benefits to individuals seeking credit:
Improved Chances of Obtaining Credit:
A good credit report enhances your chances of obtaining personal loans and credit cards from banks and financial institutions.
Impact on Loan Terms and Conditions:
Your credit report can impact the terms and conditions of the credit granted to you in the form of loans or credit cards. A strong report can lead to lower interest rates, higher loan amounts, and better repayment terms.
Financial Situation Control:
By understanding where you stand in the world of credit through your report, you gain control over your financial situation. You can make informed decisions about your financial choices and plan accordingly.
Informed Decision Making:
The credit report provides insights into your credit history, allowing you to make well-informed decisions about applying for credit or managing your existing credit accounts.
Protection Against Identity Theft:
Your credit report helps you shield yourself against identity theft. You can identify any unauthorized activities that may indicate fraudulent use of your personal information by regularly reviewing your report.
Contents of the Experian Credit Information Report
The Experian Credit Information Report contains various sections that provide detailed information about an individual's credit history and financial standing.
Information Identifying the Individual:
This section includes personal details such as name, address, date of birth, gender, e-mail ID, PAN number, passport number, voter ID, Aadhar number, telephone and mobile phone numbers, driver's license details, and ration card information.
Report Summary:
This section provides an overview of the number of credit accounts held by the individual, current balances, number of credit inquiries made within specific time frames (7 days, 30 days, 90 days, and 180 days), and non-credit inquiries made for purposes not related to credit.
Credit Account Information:
This section includes details about each reported credit account held by the individual. It includes the lender/bank name, account type (credit card, home loan, car loan), account number, ownership type (individual or joint), reporting date, account status (active or closed), date opened/closed/sanctioned amount/highest credit amount/current balance/outstanding amount/amount overdue/payment history/details of credit limit, EMI amount, repayment tenure, total write-off amount, principal write-off, settlement amount, etc.
Payment History:
This segment depicts the payment history for each credit account categorised by month and year. It includes information about the number of days past due (DPD) and various indicators such as "Up to date," "Overdue," "Standard," "Special Mention," "Substandard," "Doubtful," and "Loss."
Accessing My Credit Information Report
You can access your Experian Credit Information Report through two methods: online and post.
Online Method:
Visit the Experian website and fill out the necessary form to verify your identity and make a payment of ₹399 (including taxes) to receive your report online. You will be required to answer security questions based on your credit accounts and personal details. Once verified, you can download a copy of your report from the website or receive it via e-mail.
Post Method:
Download the application form from the Experian website, fill it out, and send it along with self-attested copies of your identity proof and address proof to the designated postal address mentioned on the form. Make a payment of ₹138 (report charges + postal fees) through demand draft or NEFT transfer. The report will be dispatched to you within 20 business days after completing this process.
Documents Required for the Experian Credit Information Report
To access the information in your credit report, you need to provide self-attested copies of your identity proof (such as PAN card, passport, or voter ID) and address proof (such as electricity bill, telephone bill, or bank statement not older than three months).
How to Read Your Credit Information Report?
Reading your credit information report is crucial for understanding your financial position and creditworthiness, besides making informed decisions about credit. Here are some key sections you should focus on:
Credit Score:
Pay attention to your credit score and identify whether it falls into the desirable range (light green or dark green) or undesirable range (red). Understand the factors that influence your score, such as recent defaults, repayment history, credit utilisation, and credit applications.
Credit Account Summary:
This section provides an overview of the total number of accounts held. These accounts include both active and closed accounts and any suit filed, like wilful default, written-off, or settled accounts. In a nutshell, it gives you a summary of your credit exposure.
Current Balance Amount Summary:
Understand the distribution of your current outstanding balances across different categories such as secured and unsecured accounts and suit filed.
Payment History:
Analyse your payment history for each credit account to identify any missed payments or defaults. Pay close attention to the 'Days Past Due (DPD)' column and understand the indicators used to represent your payment behaviour.
Conclusion:
Understanding your credit information report, India is essential in today's financial landscape. Experian plays a crucial role in providing accurate and reliable credit reports and scores to individuals in India. By accessing your Experian Credit Information Report regularly, you can gain control over your financial situation, make informed decisions about applying for credit, and protect yourself against identity theft.
At Shriram Finance, we recognise the importance of understanding credit information reports. As a trusted non-banking finance company in India, we offer a wide range of credit solutions tailored to meet various needs such as loans for commercial vehicles, two-wheelers, cars, homes, gold, personal finances, and small businesses. We also provide fixed deposits and fixed investment plan to help individuals grow their savings and investments.
FAQs
1. How can I get my Experian credit report online?
You can easily obtain your Experian credit report online by visiting the Experian website. Fill in the required personal and contact details, provide your PAN number, and pay a fee of ₹399 (inclusive of GST). Once you complete the payment and authenticate your identity, your credit report will be available to you online, and a copy will be sent to your registered e-mail address.
2. Can my information be accessed for non-credit-related purposes?
Yes, there are certain enquiries made for non-credit-related purposes that show on your credit report but do not affect your credit score. These could include requests for authentication or identification verification. You must note that such queries are recorded in your report and only can view them.
3. Can I cancel my credit information report application?
Once you have applied for your Credit Information Report, cancellation is not possible. The payment made for the report is non-refundable, and any documents submitted will be securely maintained.
4. How will the Experian credit report help me?
The Experian credit report provides a detailed summary of your credit history, including loans, credit cards, repayment history, and recent enquiries. Reviewing this report regularly helps you understand your current credit health. additionally, you can identify errors or discrepancies that need to be resolved with lenders, besides detecting fraud or identity theft promptly.
5. What does C mean in a credit report?
In a credit report, "C" represents various categories related to the status of an account. For example:
- "C - 0" indicates that all EMIs have been paid on time.
- "C - >0" suggests that the account is overdue.
- "C - S" means the account is classified as a standard asset. It indicates payment overdue for less than 90 days but still meeting the RBI guidelines.
Key Highlights
- Experian, a global information services company, is a key player in Indian credit reporting
- The Experian credit report shows loan history and inquiry records. Additionally, it provides an overview of report sections, including personal data, credit score, and payment history.
- A good credit score holds significant importance in securing favourable loan terms.
- Advantages of a strong credit report include better loan access and terms.
