The borrower submits a loan application to the lender. This application includes personal information, financial details, and the purpose of the loan. Before formally applying for a loan, borrowers may seek pre-qualification or pre-approval. Pre-qualification provides an estimate of how much the borrower can borrow based on their financial information, while pre-approval involves a more thorough review of the borrower’s finances and credit report.
Can I Check Your Credit Report ?
o check your credit report, you can request a free credit report from each of the major credit bureaus (Equifax, Experian, and TransUnion) once a year through AnnualCreditReport.com. Many financial institutions and credit card companies also offer free access to credit scores as part of their services. Alternatively, you can use third-party websites or apps that provide credit score monitoring services.
Types Of Credit Report
FICO Score is part of credit report:
FICO scores are the most widely used credit report in the United States. They are developed by the Fair Isaac Corporation and are based on credit reports from Equifax, Experian, and TransUnion. FICO scores range from 300 to 850, with higher scores indicating better creditworthiness.
Vantage Score:
Vantage Score is another credit scoring model developed jointly by the three major credit bureaus: Equifax, Experian, and TransUnion. Vantage Score ranges from 300 to 850, similar to FICO scores, and is also commonly used by lenders.
Credit Bureau-specific Scores:
Each of the major credit bureaus (Equifax, Experian, TransUnion) may also provide their own proprietary credit scores, which are based on their respective credit reports. These scores may have different ranges and factors compared to FICO and Vantage Score.
Industry-specific Scores:
Some industries, such as auto lending and mortgage lending, may use specialized credit scoring models tailored to their specific needs and risk assessments. For example, auto lenders may use the FICO Auto Score or the Vantage Score Auto Score, which are variants of the standard FICO and Vantage Score models.
Customized Scores:
In addition to standardized credit scores, some lenders and financial institutions may develop their own customized scoring models based on their unique criteria and risk assessments.
Experian:
Experian is one of the three major credit bureaus in the United States, alongside Equifax and TransUnion. It is a global information services company that specializes in providing credit reporting and credit scoring solutions to businesses and consumers.
Credit Reporting:
Experian collects and maintains credit information on individuals and businesses, including credit accounts, payment history, credit inquiries, and public records such as bankruptcies and liens. Lenders and financial institutions use this information to assess the creditworthiness of consumers when making lending decisions.
Credit Scores:
Experian generates credit scores based on the information in individuals’ credit reports. The most commonly known credit score provided by Experian is the FICO Score, which is developed by the Fair Isaac Corporation but based on credit report data from Experian and the other major credit bureaus.
CRIF High Mark:
CRIF High Mark is a credit bureau and credit information company based in India. It provides credit information and analytics solutions to banks, financial institutions, insurance companies, telecom companies, and other businesses. CRIF High Mark collects and maintains credit-related data of individuals and businesses, including credit histories, loan repayment behavior, and credit scores.
CRIF High Mark’s services include credit reports, credit scores, credit monitoring, fraud prevention solutions, portfolio management, and decision support systems for credit risk assessment and management. It offers credit scores ranging from 300 to 900, with higher scores indicating better creditworthiness.
Lenders and financial institutions in India use CRIF High Mark’s credit reports and scores to assess the creditworthiness of individuals and businesses when making lending decisions, such as approving loans, credit cards, or other financial products.