A credit report plays a very important role in Home loan and other financial loan approvals. All the banks and NBFCs completely rely on an individual’s credit or CIBIL report so as to get brief information on their creditworthiness and loan payment capacity and monthly financial practices. Only this information led to the decision that how much money can be given to an individual.
Therefore, it is always advised to maintain the credit report or CIBIL score so that the borrower must not face any problem in later stages. However, a credit report often misses some information. Below is the list of seven important things a borrower won’t find in their credit report:
Information on Investment
A credit report does not cover any information or transactions related to the saving and investments done by an individual. Information related to FD, mutual funds or other trading accounts. The credit report is just information about credit history.
Information on improving Credit Score Improving
A credit report contains information about your loan defaults or any other past NPA that leads to decrease in your score. But it did not provide information or suggest measures on how to improve the negative score. To improve the CIBIL, you have to research on your own as the information is easily provided on multiple online sites.
Information on Credit Utilisation Ratio
Credit-utilization ratio means the percentage of an individual’s available credit to what they have been currently spending. This information is not present on your credit report; however, banks can easily calculate this ratio seeing your spending behavior. High your credit utilization ratio maximum is the chances of your loan rejection. That’s why it is advised to keep it low.
Your credit report will not give you this information, so always maintain your credit utilization ratio.
Information on Loan Approvals or Rejections
A credit report does not consist of any information about your past or current loan approvals or rejections. But banks can easily get this information through other sources.
Information on Loan Settlements
A credit report reflects your NPA status. But if you have settled the loan in later stages due to financial reasons it is not reflected on the report. Seeing this, many times banks or NBFCs rejects the loan of a borrower.
Information on Defaulter
A credit report never mentions you as defaulter or blacklisted in big letters. It may mention over your loan defaults that decrease credit score but never say that you cannot get a loan from any financial institution.
Information on Payment History
A credit report comprises of your monthly payment history of just 3 years. No information on your prior loan payments or defaults is mentioned in the report. So if there is any discrepancy in your report which is not involved in the last three years then you must get it corrected via credit rating agencies so that you can save yourself from hampering your Credit score.