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Definition: Credit Report
This is a detailed statement of credit history of an individual. This is used to determine credibility in terms of past transaction of an individual. The central database is created for individuals and his past transaction. This is used to determine the credit worthiness while scrutinizing loan application. Primary lenders such as banks and credit companies evaluate the risk exposure so as to mitigate loss and minimizing NPA. Credit history can helps in determining the terms and condition and interest rate requirement before sanctioning loans.
1. Detailed credit history illustrating past loan amount and the amount paid and the amount repaid.
2. Personal information regarding address and employment history.
3. Past account information.
Any negative information about past transaction will show up in the records for 7 years and bankruptcy filing stays for about 10 years. There are four companies licensed by Reserve bank of India for providing credit information. Experia, Equifax, Highmark and Credit Information Bureau limited are the four companies.