OneScore App: Clearing the confusion on Credit Report

The road to financial literacy is a long one. For those of us trying to manage finances, information from various sources - online, on the news and from trusted confidants - can feel insufficient and overwhelming by turns. This doesn't just apply to investment advice, or when it comes to major financial decisions. It can even apply to understanding basic documents like our credit card/savings/loan statements, various forms, updates on our investments, our credit reports, etc. Sometimes, it's really hard to work out what's being said in the financial section of our newspapers.

When it comes to our credit reports though, there's a simpler way. If you've seen your credit report by any of the 4 credit bureaus that operate in India, chances are that you don't understand it: a long, complicated report with numbers galore and jargon in every sentence. It's a daunting document. Which is troubling, because so much depends on your credit score today!

Managing one's credit score and building it up to a healthy level is super important today. If you want to buy a house, or start a business, or study abroad, or even just get a credit card, you'll need a strong credit score! This was the reason behind the creation of the OneScore App. OneScore was founded by bankers who saw firsthand how this gap in understanding was hurting people.

There is a stark disparity in India's credit active population and the segment which actually monitors their Credit Report and Score on a regular basis. Infact, most young people don't know what a credit score is, and of those who do, a very small segment knows how and where to check their credit scores. OneScore is trying to bridge this gap through education, awareness, and finally, through the ease of checking and understanding their credit scores through the OneScore App. The aim: simplify credit scores, so people can take the right steps towards a stronger financial future.

The OneScore App breaks down the credit report into a simple language (no jargon in sight!), easy to understand 6 part summary:

• 1.Payments: Gives you a clear account of how many payments you've made in time. 27/27 payments means all 27 payments were made on time. 25/27 means two payments were late. Simple, right? There's also a drilldown, if you want to get into the details.

• 2. Limits: Informs you how much of your credit limit are you using? This section breaks down how much credit you have access to (credit card limit, loan sanction amounts, etc) and how much of it you’ve used till now.
• 3. Accounts: Lists down the type and number of credit accounts you have. If you've been targeted for identity theft, this is where it'll show up first: an account you don't recognise!
• 4. Age: Informs you the age of your credit accounts. The longer you've availed credit (and paid for it on time!), the better your credit score.
• 5. Enquiries: There are two types - hard enquiries, which happen when you apply for a loan or credit card, and soft enquiries, which happen when you check your credit score yourself. Hard enquiries can affect your credit score, and are a great way to catch identity theft before it happens!
• 6. Profile: Lists your personal information like your name, address, contact information. Often, inconsistencies here can be hard to catch and remedy, and most of the time, it's because we forget to update our addresses and phone numbers each time we move.

OneScore recommends checking credit scores each month, so you can learn what's working and what isn't and how to fix it. In fact, features like "Find Out Why" help you understand why your credit score moved up or down from the previous month, and AI powered personalized recommendations take the guesswork out of the actions you need to take, to improve your credit score.

So if you haven't already, download the OneScore App (It's free!), and get started on your journey to a stronger financial future.

For more articles, information and tips, visit our page #ScoreDekhaKya.