How to read and understand your credit report

Understanding and checking your credit

Most people check their credit score but rarely go through the report behind it. Yet, your credit report holds the key to what lenders see before approving your loan or credit card. It’s important to understand what each section means, how to spot mistakes, and what to do if something looks wrong.

What your credit report includes

A credit report, issued by agencies like CIBIL, Experian, or CRIF High Mark, summarises your financial history. It includes personal details, a list of all your active and closed credit accounts, your payment record, outstanding balances, and the number of times you’ve applied for credit. Lenders use this data to judge your reliability.

Understanding personal and account details

The report starts with basic information — your name, date of birth, PAN, and contact details. This section should always match your official documents. Next comes your credit account section, which lists each loan and credit card you’ve held, along with the lender’s name, sanctioned amount, and repayment history. Any wrong entry here can distort your profile, so review it carefully.

Reading your payment history

Payment history is the most critical part. It shows whether you pay on time or delay EMIs. Each month is marked as “000” for on-time or with numbers showing days of delay. Frequent late payments or defaults are warning signs for lenders and can lower your score significantly.

Checking for credit inquiries

Every time you apply for a new loan or credit card, the lender checks your report — that’s called a hard inquiry. Too many of these in a short period can signal credit-hungry behaviour and reduce your score. If you notice inquiries you didn’t make, it could indicate attempted fraud.

Spotting errors and getting them fixed

Sometimes, your report may show wrong loan amounts, old closed accounts as active, or duplicate entries. You can raise a dispute online through the credit bureau’s website. Once verified, corrections usually appear within 30 days.

The takeaway

Your credit report isn’t just a formality — it’s your financial reputation in writing. Reviewing it once every few months helps you catch errors early, protect your identity, and keep your credit score healthy. Knowing how to read it puts you in control before anyone else judges your creditworthiness.