How Can Customers Check Their Credit History?

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How Can Customers Check Their Credit History_WC

3 min 14 Jun 2023

Highlights:

How to Check Credit History?
Why Borrowers Must Check Their Credit History?

Borrowers who have been planning to apply for a loan of any kind are advised by lenders and even fellow borrowers, to check their credit score before beginning the loan application process. A borrower's credit score reflects their financial health and their intent of paying loan EMI on time. Lenders check a borrower's credit score to ascertain the risk involved for them in lending money to the loan applicant. Borrowers with a high CIBIL score get offered the lowest interest rates, higher loan sanctions and longer repayment tenors. On the other hand, borrowers who have a low CIBIL score often find it difficult to get a reliable and reputable lender. 

The credit score depends on several different factors, one of which is the credit history of the borrower.  The credit history of the borrower refers to details like how many loans they have availed, the number of loans they have repaid, the EMIs they have missed, and the credit card bills and EMIs they have paid on time. Borrowers must check their credit score as well as their credit history from time to time to understand what factors are bringing down their credit score, in case their CIBIL score is low. Some questions borrowers commonly have could be, “can individuals check credit history?”, “What is the process to check your credit history?“ and so on. Let us try to address these questions in detail.

How to Check Credit History?

Borrowers who want to check their credit history can do so by visiting the Credit bureau website and downloading their credit report. This application must be made to one of the four credit information companies recognized by the Reserve Bank of India. These are Experian, Equifax, CRIF Highmark and TransUnion CIBIL. In India, TransUnion CIBIL is the most popular credit information bureau, and most lenders use this credit rating agency to check credit history.

If you are using TransUnion CIBIL to access your credit report and credit history, know that based on the subscription plan you choose, you will be asked to pay a small subscription fee. Once you have your credit report, you will be able to check your credit history. Your credit report will have a detailed account of all the loan-related transactions you have done as well as all the other credit cards you have had.

Also Read: How to Read and Interpret Your Credit Information Report?

-Go to the official website of CIBIL and make an application to have them send over your credit report to you. 
Before accepting your loan application, CIBIL will ask you to submit certain documents. These documents will help CIBIL to match your profile with the right credit report. 
You will be asked to submit proof of address and proof of identity documents. Under the proof of identity, borrowers can submit any one of the following documents: Mandatory documents such as PAN card or Form 60/Passport /Aadhar Card / Ration Card. Under the proof of address category, borrowers can submit any one of the following: utility bills, Aadhar Card, Passport or Electoral Photo Identity Card. Keep the scanned copies of the following documents ready with you. Note: This list is indicative. Additional documents may be requested.
During the next step, you will be required to pay a subscription fee based on the plan you have chosen. 
Once you have cleared the payment, CIBIL will verify the documents and will send you your CIBIL report and credit history on your email.

Also Read: Why Is It Important to Check Your Credit Report and How Often?

The Importance of Checking Credit History Six Months Before Applying for a Loan

If you are planning to apply for a loan of any kind, like a housing loan or loan against property, check your CIBIL report and credit history at least six months in advance. This is important for two reasons. 

First, if you check credit history and realize your credit score is not as good as it should be, you will need to take corrective measures and these measures will take at least six months to show results.
Second, if you see that your credit history has any errors which are causing your CIBIL score to go down, you will need to report these errors to TransUnion CIBIL. The credit information bureau cannot rectify errors on its own. When a borrower files a dispute, the company reaches out to the financial institution that has reported wrong information, which has led to the error. Only after the financial institution replies does CIBIL rectify errors in your report. The whole process can take up to 45 days. Further, it takes a few more days for the changes to reflect in your credit report.

Final Words

Now that you know the process to check your credit history, check your credit report and history immediately, especially if you are planning to apply for a loan soon. Apply for a loan only if you have a good CIBIL score. If your CIBIL score is low, improve it first and then apply for a loan.

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