Where to get your credit report from? - Where do CIC’s get all your information from?

You may already know by now, but it begs repeating, especially when there is information which is not given elsewhere on the web.

You can get your credit report from the three main credit bureaus in India, who are also called Credit Information Companies or CICs.

Now, not all CICs offer you your report for free. There are some from whom you’ll need to buy it.

However, every single time lenders want to check your credit score, they have to pay a fee.

Needless to say, lenders check your credit score every time you apply for a loan or credit card.

Where do CIC’s get all your information from?

You may now be wondering where on earth these CICs get your information from.

Well, that’s no mystery.

They get your financial and personal information from the various financial institutions like banks from whom you have taken loans, or have applied for one.

Credit reports allow lenders to minimize defaults in repayments by knowing beforehand who has a bad credit history. Even though your credit score is not the only factor in getting a loan, credit reports do have significant weight and are considered to determine your eligibility.

Why are they so important?

Credit Scores are important both for you and the lender, as we have discussed earlier.

For the lenders, it is a measure of your creditworthiness.

Having a high score means you have a healthy and consistent repayment habit, while a low score indicates the opposite.

What are they used for?

Credit reports tell lenders how creditworthy you are.

For lenders, your creditworthiness is perhaps one of the most important factors. After all, they’re more likely to give you a loan when they are sure of your ability to pay the loan back, in time and with interest.

If a person has a low credit score, it means he or she is not very creditworthy. Most lenders won’t want to risk their money on them. And even if people with low credit scores get loans luckily, such credit shall be accompanied with pretty high interest rates and long repayment periods, which means you’ll end up paying a whole lot of money just because you are plagued with a poor credit score.

Because of this, it is much better to improve your credit score before asking for credit. Those with high credit scores get the best loans and credit cards