2 days ago

Understanding Credit Scores, Reports, Checks, and Responsible Credit Management

A credit score is a three-digit number that gives a quick picture of how someone has used credit.

A credit report shows the details behind that number.

It includes accounts, payments, amounts owed, and recent credit enquiries.

Paying loans and card bills on time can support a healthy credit profile.

Using a large share of a credit-card limit or applying for many loans quickly may affect the profile.

Looking at your own report is different from a lender checking it during a loan application.

Checking your report can help you find mistakes or accounts you do not recognise.

Before applying for a major loan, it can be useful to review the report and correct problems.

A good score helps, but lenders also consider income, existing debts, repayment capacity, and their own policies.

Key facts

Credit score: A three-digit number summarising information in a person’s credit history.
Credit report: A detailed record that can include credit accounts, repayment information, outstanding amounts, and recent credit enquiries.
Common influences: Repayment history, credit utilisation, length and depth of credit history, and multiple recent lender enquiries.
Personal checks: Checking your own credit information is different from a lender-initiated enquiry and should not automatically reduce the score.
Bajaj Finance service: Bajaj Finance provides an online Credit Pulse Report facility that includes access to an available credit score and report.
Report errors: Possible issues include overdue payments marked incorrectly, loans remaining active after repayment, inaccurate balances, unfamiliar accounts, or unrecognised enquiries.
Loan approval: A high credit score does not guarantee approval because lenders may also assess income, obligations, repayment capacity, loan amount, employment or business profile, and internal policies.

theprint.in · 2 days ago