To understand simply, a credit bureau collects and maintains information of an individual’s payment with respect to loans and credit cards from various sources and provides valuable credit information to its customers. The records also contain general information details such as the applicant’s age, citizenship, insurance details and past employment data and widely used by lenders, insurers, landlords etc. Since this information is extremely critical, thus it is important that the information provided is correct and updated.
What does it mean for me?
A good credit history determines the loan amount that you qualify for and the subsequent interest that you can pay off. The current trend of spending suggests that people are increasingly dependent on credit. At an individual level, the credit score not only helps loan providers to identify customers, likely to pay back their loans on time but also helps them to do this economically and quickly, certainly resulting in faster loan approvals.
Who uses these credit scores?
Credit scores help money lenders to determine how much interest you can pay on loans and insurers to calculate premiums
It helps employers who are hiring to ascertain financial stability of a new hire
In many cases, landlords check the credit scores before appointing a new tenant to ascertain their financial position such that they receive timely rent.
Since this information is extremely critical, thus it is important that the information provided is correct and updated.
How does TrustID help?
With an increasing demand for credit scores, TrustID has introduced a secured mechanism to check credit scores instantly. Integrated with leading credit bureaus in India like CIBIL, High Mark and Equifax, the application allows the lender to perform quick credit verification on the applicant offering a credit score basis his income, loans outstanding and other details.
What do the outcomes indicate?
Over or under insured as compared to approximate incomes
Low credit scores with high amount of loans outstanding indicates the person is over-indebted and likely to default on premiums
Credit defaults in the past 3 years again indicates financial recklessness
Tracking his loans and matching those against demographic details such as location, phone numbers etc.
Tracking and matching previous death claims with later loan applications to ensure no dead men/ ghosts are applying for fresh loans!