A Credit Information Report (CIR) is a detailed document that contains information about the credit worthiness of the borrower. A lender like a bank or a NBFC refers to the CIR when a borrower applies for a loan.
The credit information report is a measure of the borrower’s credit worthiness.
The documents contain updated information about the borrowers existing liabilities, repayments, and loan defaults. All the credit bureaus in India tracks the borrowing and repayment behaviour of all borrowers.
The credit bureaus receive the information from the banks and NBFCs. The document also contains an itemised list of inquiries made by the borrower to a bank or an NBFC for availing a credit facility.
How to get a Credit Information Report?
Check for the credit score on any of the following credit bureaus – TransUnion CIBIL, Equifax, Experian, and CRIF High Mark. The TransUnion CIBIL is the most common. The report received on availing a credit score check is the credit information report unique to the borrower.
The CIR document has the credit score, the number of past, present, and active loan details, number of repayments, credit outstanding, loan waive-offs, and the last six months of credit inquiries.
It is recommended that borrowers should acquire and review their credit information report at least every six months. It helps to keep a track of repayment updates and maintain an overall credit health, aiding the borrower to plan future borrowing requirements.
Whenever reviewing the CIR document, ensure to check the validity of the credit details. Credit score fraud or misrepresentation is not uncommon. It is wise to check all the itemized active loan accounts to ensure they represent the right data.
If there are loan accounts that were not availed by the borrower, file a complaint with the relevant credit bureau for correction. Hiring a credit repair agency also helps to correct the credit score.
Monitor the credit information document details closely for a healthy credit line.