Have you ever applied for a loan and been turned down? Have you wondered why? Your credit history or credit report could be a probable reason. Therefore, it becomes important to know about your credit report.

What is a credit report?

A credit report is a record of an individual's borrowing and repaying activities. It contains information about where you live, how you pay your bills. It shows your credit card accounts, how regularly you make your payments. It also reveals if you have been sued against, any default related to your payments or have filed for bankruptcy. The consumer reporting agencies (CRAs) or credit bureaus generate these credit reports. US based Experian is the largest credit bureau in the world. In India, CIBIL is one of the organizations playing this role. These credit bureaus collect information about your credit activities, store it in huge databases, and charge a fee for supplying the information. They collect this information from their members like banks, non-banking financial companies (NBFCs), credit card companies, housing finance companies etc., who have previously extended credit to you. Based on this they assign you a credit score. A good credit score helps you to avail a loan with more ease.. A credit report tells about your creditworthiness. Credit reports also provide valuable insight into a job applicant's financial responsibility. This may be particularly important if a position involves handling cash, responsibility for managing money, or similar fiduciary responsibilities.