Things You Won’t Find in your Credit Report

A credit report is a detailed record of an individual’s borrowing and repayment history. It contains information about various types of credit accounts, such as loans (personal, home, auto, etc.), credit cards, and other lines of credit. The report includes details like the credit limit, outstanding balance, payment history, and any delinquencies or defaults. It also captures inquiries made by lenders when an individual applies for new credit.

Importance of Credit Reports in India

In India, Credit Reports have become increasingly important due to the growing awareness of credit scores and the need for responsible lending practices. A good credit report can open doors to favorable interest rates, higher credit limits, and better financial opportunities. Conversely, a poor credit report may lead to loan rejections, higher interest rates, or limited access to credit.

Credit reports play a crucial role in the following areas:

• • • Loan and credit card approvals: Lenders and credit card issuers heavily rely on credit reports to assess an applicant’s creditworthiness and make informed lending decisions.
    • Interest rate determination: The interest rates offered on loans and credit cards are often based on an individual’s credit score, which is derived from their credit report.
    • Employment screening: Some employers may review credit reports as part of their background checks, particularly for positions involving financial responsibilities.
    • Rental agreements: Landlords may request credit reports to evaluate the reliability of potential tenants in making timely rent payments.

Primary Credit Bureaus in India

In India, the credit reporting industry is regulated by the Reserve Bank of India (RBI), and there are several major credit bureaus that maintain and provide credit reports:

• • CIBIL (Credit Information Bureau (India) Limited): CIBIL is one of the oldest and most widely recognized credit bureaus in India. It collects and maintains credit information from various financial institutions and generates credit reports and scores.
  • Experian: Experian is a global information services company that operates in India as a credit bureau. It provides credit reports, scores, and analytical solutions to lenders and businesses.
  • Equifax: Equifax is another global credit reporting agency that has a presence in India. It offers credit reports, scores, and risk management solutions to financial institutions and businesses.
  • CRIF High Mark: CRIF High Mark is an Indian credit bureau that provides credit reports, scores, and risk management solutions to lenders and businesses.

These credit bureaus collect data from various sources, including banks, non-banking financial companies (NBFCs), credit card issuers, and other lending institutions. They compile this information into comprehensive credit reports, which are used by lenders and creditors to make informed decisions.

Things You Won’t Find in your Credit Report

Personal Information Not Included

Your credit report is a comprehensive record of your borrowing and repayment history, but it does not include certain personal details that may seem relevant to your creditworthiness. While these details may be considered by lenders during the loan application process, they are not part of your official credit report.

• • • • Your marital status: Your marital status is not included in your credit report. Whether you are single, married, divorced, or widowed, this information is not recorded. However, if you have joint accounts or loans with a spouse or partner, their credit information may be linked to yours, affecting your credit report indirectly.
      • Employment details: Your credit report does not contain any information about your current or past employment, such as your job title, employer, or length of employment. Lenders may request this information separately during the loan application process, but it is not a part of your credit report.
      • Salary information: Similarly, your credit report does not include any details about your salary or income. Lenders may ask for proof of income when evaluating your loan application, but your actual income figures are not recorded on your credit report.
      • Income details: While your credit report does not include your specific income details, it may contain information about your overall income range or source of income (e.g., employment, self-employment, or other sources). However, this information is typically limited and does not provide precise income figures.
      • Health history: Your credit report is not linked to your medical records or health history. Any information about your past or current medical conditions, treatments, or disabilities is not included in your credit report. Lenders cannot access this information through your credit report.

Financial Information Missing

While your credit report provides a comprehensive overview of your credit history and financial obligations, it does not include specific details about your overall financial situation. Here’s what you won’t find in your credit report:

• • • • Bank account balances: Your credit report does not contain any information about the balances in your checking, savings, or other bank accounts. Lenders and credit reporting agencies do not have access to this personal financial data, which is protected by banking privacy laws.
      • Investment portfolio details: Whether you have investments in stocks, bonds, mutual funds, or other financial instruments, the details of your investment portfolio are not included in your credit report. This information is considered separate from your creditworthiness and is not relevant to lenders when evaluating your credit risk.
      • Cryptocurrency holdings: With the rise of digital currencies like Bitcoin and Ethereum, many individuals have invested in cryptocurrencies. However, your credit report does not reflect any cryptocurrency holdings or transactions you may have made using these digital assets.
      • Savings and investment data: While your credit report may indicate if you have outstanding loans or lines of credit against your investments or savings, it does not provide specific details about the value of your savings accounts, retirement accounts, or other investment vehicles.
      • Non-debt financial information: In general, your credit report only reflects information related to your credit history, outstanding debts, and payment patterns. It does not include any other financial information that is not directly related to your creditworthiness, such as your income, assets, or net worth.

Credit-Related Information Not Reported

You might think your credit report contains everything there is to know about your credit history and financial behavior, but believe it or not, there are some crucial pieces of information that don’t make it onto this document.

• • • • Your credit score: This one might surprise you – your actual credit score is nowhere to be found on your credit report! The report only provides the data used by credit scoring models to calculate your score, but the numerical value itself is kept under wraps. Credit scores are calculated separately by different credit bureaus and lenders based on the information in your report.
      • Credit approval status and analysis: Have you ever been approved or denied credit in the past? Well, your credit report won’t tell you that. It also doesn’t give you any insight into why a lender decided to approve or reject your credit application. The report simply serves as a record of your credit history, leaving the interpretation and decision-making process to the lenders themselves.
      • Credit utilization ratio: While your report shows your outstanding balances and credit limits for each account, it doesn’t explicitly state your credit utilization ratio. This ratio, which is the amount of credit you’re using divided by your total available credit, is a major factor in determining your credit score. Lenders generally prefer a lower ratio, as it suggests you’re not over-extended with debt.
      • Interest rates of other loans: Curious about the interest rates or terms of your existing loans or credit accounts? Sorry, but your credit report won’t help you there. It only displays basic account details like the lender’s name, account type, opening date, and payment history. The specific interest rates and terms are kept under wraps.
      • Non-traditional financial loans: Ever taken out a payday loan or used a rent-to-own agreement? Well, these types of non-traditional financial products might not even be reported to the major credit bureaus. That means they could potentially impact your overall creditworthiness without leaving a trace on your credit report.

How to improve your credit score?
While your credit report provides valuable insights into your credit history, it doesn’t offer any specific advice or recommendations on how to improve your credit score. Credit reports are factual records, and it’s up to you (and potentially a credit counselor or financial advisor) to analyze the information and devise strategies to enhance your credit profile.
Remember, your credit report is just a snapshot of your credit history at a particular point in time. It’s essential to review it regularly and address any inaccuracies or discrepancies promptly.

Utility and Telecom Payment History

• • • • Electricity Bill Payments: Your credit report will not reflect your payment history for electricity bills. Whether you’ve been diligent in settling these bills on time or have occasionally missed a payment, it won’t be documented in your credit file. This is because credit bureaus do not receive data from electricity providers, as these companies are not considered traditional lenders.
      • Water Bill Payments: Similar to electricity bills, your water bill payments are not reported to credit bureaus. Even if you have an outstanding balance or have been disconnected due to non-payment, these incidents will not show up on your credit report. Water utility companies operate independently from the credit reporting system.
      • Mobile/Internet Bill Payments: Your credit report also lacks information about your mobile phone or internet service payments. Whether you’ve consistently paid these bills on time or have fallen behind, your payment history with telecom providers is not factored into your credit score or report. These companies do not share customer payment data with credit bureaus.

It’s essential to understand that while utility and telecom payments are crucial for maintaining essential services, they do not directly impact your credit score or report. Credit bureaus primarily focus on traditional lending activities, such as credit cards, loans, and mortgages, when compiling your credit report. It’s important to note that if your unpaid utility or telecom bills are sent to collections, the collection agency may report the delinquent account to the credit bureaus, potentially affecting your credit score. Additionally, some utility companies may conduct a soft credit check when you apply for their services, which can leave a record on your credit report but does not impact your score.

Rental Payment Records

• • • • Rent payments to landlords: In India, rent payments made to landlords are typically not reported to credit bureaus by default. Credit bureaus primarily rely on information provided by financial institutions, such as banks and credit card companies, to generate credit reports. Since landlords are not considered financial institutions, they are not obligated to report rental payment histories to credit bureaus.
        This means that even if you have been diligently paying your rent on time for years, it may not have any direct impact on your credit score or credit report. The absence of rental payment records can be disadvantageous, especially for individuals who do not have a significant credit history or those who are trying to establish their creditworthiness.
      • Security deposit information: In addition to rent payments, security deposits paid to landlords are also not reflected in credit reports. Security deposits are typically refundable amounts paid to the landlord as a safeguard against potential damages or unpaid rent. While these deposits can be substantial, they are not considered part of your credit history and, therefore, do not appear on your credit report.

Inquiries from Employers or Landlords

• • • Background checks for employment: When you apply for a job, your potential employer may want to conduct a background check on you. This could include verifying your education, employment history, criminal records, and more. However, one thing they cannot access through a standard credit report is your credit score or details of your credit accounts.
      Employers are generally interested in your overall credit standing but are not privy to the nitty-gritty of your credit report unless you provide them explicit permission. They can obtain a modified version called an “employment credit report” which excludes account numbers and does not provide a full credit score.
    • Tenant screening by landlords: Similarly, when you’re applying to rent an apartment or house, the landlord may request a credit check as part of the screening process. Like employers, they cannot directly access your full credit report without your consent. Landlords typically work with tenant screening companies that provide a modified version of your credit report tailored for rental purposes. This limited report shows aspects like payment histories, debt levels, and major derogatory items like bankruptcies or evictions. However, it leaves out complete details of your account numbers, balances, credit limits and full credit scores.

Spouse’s Credit Information

In India, credit bureaus such as CIBIL, Experian, and CRIF High Mark do not merge or combine the credit information of spouses or partners. Your spouse’s credit card balances, loan repayment history, credit inquiries, or any other credit-related information will not appear on your credit report unless you have jointly applied for credit or have been added as a supplementary cardholder on each other’s accounts.

It’s important to note that while your spouse’s credit information is not directly reflected on your credit report, their financial behavior can indirectly affect your credit situation. For example, if you have jointly applied for a loan or credit card, the payment history and outstanding balances of that joint account will be reflected on both of your credit reports.

Defaulters List

Your credit report does not contain a comprehensive list of all defaulters or individuals who have defaulted on their loan or credit card payments. The credit report is a record of your personal credit history and does not provide information about other individuals’ defaulting status.
However, if you have defaulted on a loan or credit card payment, this information will be reflected in your credit report as a negative entry. Credit bureaus in India typically include details such as the type of account (e.g., credit card, personal loan, auto loan), the lender’s name, the outstanding balance, and the number of missed or delayed payments.

Limited Payment History

The length of time that credit information remains on your credit report can vary depending on the type of information and the credit bureau’s policies. In general, most credit bureaus in India maintain the following payment history:

• • • • Credit accounts (loans, credit cards): Payment history is typically maintained for 36 months (3 years) or more.
      • Inquiries: Credit inquiries made by lenders when you apply for credit may remain on your report for 24 months (2 years).
      • Negative information (defaults, settlements, write-offs): Negative information such as defaults, settlements, or write-offs can remain on your credit report for up to 7-10 years, depending on the credit bureau’s policies.

Legal and Criminal Records

• • • Civil court judgments: Civil court judgments, such as lawsuits or legal disputes, are not included in your credit report. These judgments may impact your financial situation, but they are separate from your credit history. Lenders and credit reporting agencies do not have access to this information through your credit report.
    • Arrest records: Arrest records are also not a part of your credit report. An arrest alone does not necessarily indicate guilt or result in a conviction. Therefore, credit reporting agencies do not consider arrest records when compiling your credit information.
    • Traffic violations: Similarly, traffic violations, such as speeding tickets or parking fines, are not reflected on your credit report. While these violations may lead to fines or penalties, they are not directly related to your creditworthiness and are, therefore, not included in your credit report.

Reasons for Credit Report Exclusions

• • • Privacy concerns: One of the primary reasons for excluding certain information from credit reports is to protect the privacy of individuals. Credit bureaus are responsible for maintaining sensitive personal and financial data, and they must strike a balance between providing relevant information to lenders and safeguarding the privacy rights of consumers.
      For instance, credit reports do not include details about an individual’s income, employment history, or educational background. While these factors may be relevant in assessing creditworthiness, disclosing such information on credit reports could raise privacy concerns and potentially expose individuals to discrimination.
    • Data accuracy and reliability: Credit bureaus aim to maintain the accuracy and reliability of the information they report. As a result, they may exclude certain types of data that are deemed unreliable or difficult to verify. For example, credit reports typically do not include information about an individual’s rental history or utility payment records, as these data sources may be inconsistent or prone to errors.
      Additionally, credit bureaus may exclude certain types of debts or financial obligations that are not directly related to credit transactions, such as medical bills or unpaid parking tickets. These debts may not accurately reflect an individual’s creditworthiness and could potentially skew the overall credit assessment.
    • Relevance to credit risk assessment: Credit reports are primarily designed to assess an individual’s credit risk, which is the likelihood of defaulting on a loan or credit obligation. As a result, credit bureaus may exclude information that is deemed irrelevant or has minimal impact on credit risk evaluation.
      For instance, credit reports typically do not include information about an individual’s marital status, political affiliations, or religious beliefs. While these factors may be relevant in other contexts, they are generally not considered relevant in assessing credit risk.
      Similarly, credit reports may exclude certain types of financial accounts or transactions that are not directly related to credit, such as savings accounts, investment portfolios, or real estate holdings. While these assets may contribute to an individual’s overall financial situation, they do not necessarily reflect their ability to repay debts or manage credit responsibly.

Checking and Disputing Credit Report Errors

Your credit report is a crucial document that reflects your creditworthiness and financial behavior. However, it’s not uncommon for errors to creep into these reports, which can negatively impact your credit score and potentially hinder your ability to obtain loans, credit cards, or even employment opportunities. Therefore, it’s essential to regularly review your credit reports and take prompt action if you encounter any inaccuracies.
Obtaining credit reports from bureaus
To obtain your credit reports, you can visit the respective bureau’s website or submit a written request along with the necessary documentation, such as proof of identity and address. Some bureaus also offer the option to purchase your credit report instantly online.

• • • Identifying and reporting inaccuracies: Once you have obtained your credit reports, carefully review them for any errors or discrepancies. Common errors may include incorrect personal information, duplicate accounts, inaccurate payment histories, or accounts that do not belong to you.
      If you identify any inaccuracies, it’s crucial to take prompt action by filing a dispute with the respective credit bureau(s). Each bureau has its own dispute resolution process, but generally, you will need to provide supporting documentation to substantiate your claim.
      It’s also recommended to notify the creditor or lender associated with the erroneous information and request that they rectify the incorrect data reported to the credit bureaus.
• Resolving disputes with creditors: If the credit bureau fails to resolve the dispute in your favor, or if the creditor refuses to correct the inaccurate information, you may need to escalate the matter further.
  • • One option is to file a complaint with the Reserve Bank of India (RBI) or the Banking Ombudsman, who can intervene and facilitate a resolution between you and the creditor or credit bureau.
    • Additionally, you can consider seeking legal assistance, particularly if the errors on your credit report have caused significant financial harm or affected your ability to obtain credit or employment.
    • Throughout the dispute resolution process, it’s essential to maintain thorough documentation, including copies of all correspondence, supporting documents, and records of your interactions with the credit bureaus and creditors.

Improving and Maintaining a Good Credit Score

• • • Timely Repayments: One of the most important aspects of maintaining a good credit score is making timely repayments on your existing debts. Your credit report may show your payment history, but it does not explicitly indicate the timeliness of your payments. Late payments can severely impact your credit score, even if you eventually clear the outstanding amount.
      To maintain a good credit score, it is essential to prioritize your debt obligations and ensure that you make at least the minimum required payments on time, every time. Setting up automatic payments or reminders can help you avoid late payments and the associated negative impact on your credit score.
    • Credit Utilization Ratio: Your credit utilization ratio, which is the amount of credit you are using compared to your total available credit, is a crucial factor in determining your credit score. While your credit report may show your outstanding balances and credit limits, it does not explicitly calculate or display your credit utilization ratio.
      Ideally, you should aim to keep your credit utilization ratio below 30% to maintain a good credit score. A higher ratio may be interpreted as a sign of over-reliance on credit, which can negatively impact your score. Regularly monitoring your credit utilization ratio and making efforts to reduce it, if necessary, can help improve your credit score.
    • Credit Mix and Age: Your credit report provides information about the types of credit accounts you have, such as credit cards, personal loans, or mortgages, but it does not explicitly showcase the diversity of your credit mix or the age of your accounts.
      Having a diverse mix of credit accounts, including revolving credit (credit cards) and installment loans (personal loans, auto loans, etc.), can positively influence your credit score. Lenders view a diverse credit mix as an indicator of your ability to manage different types of credit responsibly.