What Is a Credit Report and How Can You Check It?
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A credit report is a detailed record of your borrowing and repayment history. It shows lenders how responsibly you have handled loans and credit cards in the past. If you are planning to apply for a personal loan, home loan, business loan, or even a credit card, your credit report plays a crucial role in the approval decision.
At Saarathi.ai, we have observed that many loan rejections happen due to errors or outdated information in credit reports. The good news is that you can check your credit report for free and correct mistakes before applying. In this guide, we explain what a credit report contains, why it matters, and how you can check it in India.
What Is a Credit Report?
A credit report is a comprehensive document issued by a credit bureau. It contains your complete credit history, including:
Personal details
Loan accounts
Credit card usage
Repayment records
Loan enquiries
Defaults or settlements
In India, one of the leading credit bureaus is TransUnion CIBIL. Other RBI-licensed bureaus also operate in the country under the supervision of the Reserve Bank of India.
Your credit report also includes your three-digit credit score, but the report itself is much more detailed than the score.
What Information Does a Credit Report Contain?
Understanding the sections of your credit report helps you read it correctly.
1. Personal Information
This includes:
Full name
Date of birth
PAN details
Address history
Contact information
Any mismatch here can cause loan processing delays.
2. Account Information
This is the most important section. It lists:
Active loans
Closed loans
Credit cards
EMI amounts
Outstanding balances
Days Past Due records
Even one missed EMI can reflect here for years.
3. Credit Enquiries
Every time you apply for a loan, the lender performs a hard enquiry. Multiple enquiries in a short period may impact your score.
4. Public Records
If you have any legal cases related to debt, they may appear here.
At Saarathi.ai, we advise borrowers to review this section carefully before submitting any new loan application.
Why Is a Credit Report Important?
1. Determines Loan Approval
Lenders use your credit report to assess repayment behaviour. A strong repayment track record improves approval chances.
You can compare personal loan offers on Saarathi.ai after checking your credit profile to avoid unnecessary rejections.
2. Impacts Interest Rates
A clean credit report often results in:
Lower interest rates
Higher loan eligibility
Faster approvals
According to coverage in The Economic Times, lenders are increasingly using automated underwriting systems that rely heavily on credit bureau data.
3. Helps Detect Fraud
Regularly checking your report can help you spot:
Unknown loans
Fraudulent credit cards
Incorrect outstanding amounts
4. Supports Financial Planning
If you plan to apply for:
A home loan
A business expansion loan
A loan against property
Your credit report helps you prepare in advance.
How to Check Your Credit Report in India
You are entitled to one free credit report per year from each credit bureau.
Step 1: Visit the Credit Bureau Website
Go to the official website of TransUnion CIBIL or any RBI-approved bureau.
Step 2: Enter Personal Details
Provide:
PAN number
Date of birth
Address
Step 3: Complete OTP Verification
You will receive an OTP on your registered mobile number.
Step 4: Download Your Credit Report
Once verified, you can access and download your report.
At Saarathi.ai, our AI eligibility assistance helps you understand how lenders may interpret your credit profile before you formally apply.
How Often Should You Check Your Credit Report?
We recommend checking your credit report:
At least once every 6 months
Before applying for a major loan
After closing a loan
If you notice sudden drops in your credit score
During festive seasons or post-Budget lending rate changes, loan demand increases. Checking your report beforehand ensures you are application-ready.
Common Errors Found in Credit Reports
At Saarathi.ai, we have seen borrowers face rejections due to simple errors such as:
Closed loans marked as active
Incorrect outstanding balances
Duplicate loan accounts
Wrong personal details
EMI marked late despite on-time payment
These errors can reduce your credit score unfairly.
How to Fix Errors in Your Credit Report
1. Raise a Dispute with the Credit Bureau
Log into your bureau account and submit a dispute request.
2. Provide Supporting Documents
Attach:
Loan closure letter
No Objection Certificate
Bank statements
3. Wait for Verification
The bureau will contact the lender to verify the details. Corrections usually take 30 days.
4. Recheck the Updated Report
After resolution, download your updated report.
If you are unsure about your eligibility after corrections, you can ask eligibility questions via Saarathi AI expert and receive personalised guidance instantly.
Difference Between Credit Report and Credit Score
Credit Report | Credit Score |
Detailed financial history | 3-digit summary |
Lists all loans and EMIs | Ranges from 300 to 900 |
Shows enquiries and defaults | Used for quick screening |
Lenders look at both, but the score is often the first filter.
How Saarathi.ai Helps You Use Your Credit Report Smartly
Saarathi.ai is a digital lending marketplace connecting borrowers with 110+ banks and NBFCs through an AI-powered ecosystem.
With Saarathi.ai, you can:
Compare loan offers without random applications
Get AI-based recommendations through the Saarathi Recommendation Engine
Track applications in Saarathi Bazaar dashboard
Enjoy a fully paperless process
Avoid unnecessary hard enquiries
Instead of applying blindly and impacting your credit report negatively, you can apply strategically based on AI insights.
FAQs
1. Is checking my credit report free in India?
Yes. You are entitled to one free report annually from each RBI-approved credit bureau.
2. Does checking my credit report affect my credit score?
No. Self-checks are considered soft enquiries and do not impact your score.
3. How long do defaults stay on a credit report?
Typically, negative information can stay for up to 7 years.
4. Can I get a loan with errors in my credit report?
It may reduce approval chances. Correct errors before applying.
5. How long does it take to fix a credit report mistake?
Usually 30 days, depending on lender verification.
Conclusion
Your credit report is your financial report card. It influences:
Loan approvals
Interest rates
Credit limits
Financial credibility
Before applying for any loan, review your credit report carefully. Correct errors early and strengthen your profile.
Discover personalized loan options on Saarathi.ai today and apply confidently with AI-powered guidance.
