A credit report is considered one of the most important factors when you apply for a personal loan or any form of credit from financial institutions. It provides a snapshot of your debts, credit, and your overall financial health. However, your credit report may not include all of your financial details and cash inflows. It only includes your financial history based on your personal loans and the amount of credit you have availed.
What you won’t find in your credit report
Here are some major streams of financial inflow and factors that you will not find on a credit report.
1. Investment and Savings information
Details about your investments, be it in the stock market or elsewhere, will not be included in your credit report. In addition, details of your investment in a fixed deposit or a recurring deposit will also not be mentioned in your credit report. Overall, information about your current account, fixed deposit account, and trading account will not be included and will also not impact your CIBIL score.
2. Utility bills
The activity of any of your utility bills ranging from electricity bills and telephone bills to water bills will not be available on your credit report. One of the key concerns for many individuals is that most of their utility bills are settled through bank transactions. But, that shouldn’t be a concern as payment of utility bills through a bank account will not be reflected on the credit report.
3. Your credit utilization ratio
Your credit utilization ratio is essentially the ratio between your credit limit and credit usage. However, banks have the resources and permission to calculate this ratio. Both overutilization and underutilization can affect your CIBIL score. Typically, banks verify profiles and keep a check for profiles that have a credit utilization ratio of less than 30%.
4. Credit information of your spouse
Irrespective of whether you’re married or not, your credit report will not include your spouse’s credit information and thereby won’t affect your CIBIL score. Only your credit information will be mentioned on your credit report.
5. Your income
Your credit report will also not include your salary and its source. The report only considers your credit status and your repayment history.
6. Non-traditional loans
Any loan is taken outside of a bank, or a financial institution is considered a non-traditional loan. This information will not be included in your credit report. So, you can apply for a personal loan without worrying about other loans you might have procured outside of a bank.
7. Rate of interest of other loans
If you have any other ongoing loan, the amount of interest you pay for that loan will not be available on your credit report.
8. Reason for settlement
The settlements you have made will be shown on your credit report. But, the reason behind those settlements will not be shown.
While your credit report might have several aspects that any financial institution may require to provide credit, it may not have several other information. However, understanding your credit report is crucial, and Finserv MARKETS is the right place for it. You can gain deep insights into what the CIBIL score is and check the CIBIL score with a PAN card. In addition, Finserv MARKETS provides an extra step of knowledge about improving your CIBIL score to increase your chances of availing of a personal loan.