Loans? Build a good credit history
Whether you have repaid your EMIs/credit card payments on time or you paid it after the due date or you didn’t pay at all is part of your credit history. All these records go into making your Credit Information Report.
A lender will check your credit history through accessing your Credit Information Report or CIR. While on one hand it helps a lender differentiate between those who have honoured their obligations responsibly and those who have defaulted, on the other it helps the borrower to negotiate better with the lender if his credit history is good. Managing Director, Credit Information Bureau of India (CIBIL), Arun Thukral says, “Individuals who have appropriately manage their obligations build ‘reputational collateral’ with lenders. In turn, this reputational collateral allows individuals to negotiate better terms with a lender”.
Credit Information Report (CIR)
The use of CIRs
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