INTRODUCTION
An individual's credit rating, also known as a credit score, is a professional assessment of
how likely they are to repay their financial obligations on time. Credit ratings are based on a
person's borrowing and repayment history, as well as how often they've looked for credit.
Lenders use credit ratings to decide whether to lend money to an individual, and how much
and at what interest rate.
Credit ratings are usually expressed as numbers ranging from 300 to 900, with higher scores
indicating greater trustworthiness to lenders. A score of 670 to 739 is generally considered
good, while a score of 800 or above is considered excellent. Most consumers have scores
between 600 and 750.
Credit rating agencies assess a borrower's financial risk by compiling reports that include
factors such as: Borrowing and lending history, Capacity to honor debt obligations, Previous
indebtedness, and Future economic potential.
Experian Report:
An Experian Credit Report is a detailed record of a person's credit history and financial
behavior. It's compiled by Experian, one of the three major credit bureaus in the United
States, along with Equifax and TransUnion.
An Experian Credit Report includes:
• Credit accounts: Information on loans, credit cards, mortgages, and other credit
accounts
• Payment history: Details on when payments were made and if they were on time
• Outstanding debts: The amount of money owed on each account
• Public records: Information on bankruptcies and other public records
• Identity information: Full name, birth date, current and past addresses, phone
numbers, and employers
• Recent inquiries: When and who has requested to view your credit report
Lenders use Experian Credit Reports to assess the risk of lending money to a person and to
determine the terms of any credit offered. A higher credit score indicates that a person is more
likely to be approved for new credit.
CIBIL Report Summary
Name: Molly Kutty
Experian Credit Score: 742 (Good)
Timely Payment: 100%
Age: 11 years
Score Factors:
a. Recency – Recent Credit Account Defaults
b. Leverage – Credit Accounts with on-time re-payment history
c. Coverage – Non-delinquent and delinquent Credit Accounts
d. Delinquency Status – Defaults on Credit Accounts (current & recent periodic
intervals)
e. Credit Applications – Credit Account Applications over last 30 days
Credit Account Summary:
a. Total Number of Accounts – 16
b. Active Accounts – 8
c. Closed Accounts – 8
Current Balance Amount Summary:
a. Total Current Balance Amount – ₹ 86,25,142
b. Secured Accounts Balance – ₹ 86,25,142
c. Unsecured Accounts Balance – 0
Credit Enquiry Summary:
a. Last 7 days credit enquiries – 0
b. Last 30 days credit enquiries – 0
c. Last 90 days credit enquiries – 0
d. Last 180 days credit enquiries – 0
Non – Credit Enquiry Summary:
a. Last 7 days credit enquiries – 0
b. Last 30 days credit enquiries – 0
c. Last 90 days credit enquiries – 0
d. Last 180 days credit enquiries – 0
Active Account Details:
1. Account 1:
a. Date Opened – 23/02/2024
b. Ownership – Guarantor
c. Rate of Interest – 11.15%
d. Repayment Tenure – 84
e. Loan Type – General
f. Sanctioned Amount – ₹ 20,00,000
g. Current Balance – ₹ 8,96,766
h. Value of Collateral – ₹ 33,75,000
2. Account 2:
a. Date Opened – 31/03/2024
b. Ownership – Joint
c. Rate of Interest – N/A
d. Repayment Tenure – 58
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 17,50,000
g. Current Balance – ₹ 16,71,942
h. Value of Collateral – N/A
3. Account 3:
a. Date Opened – 31/03/2024
b. Ownership – Joint
c. Rate of Interest – N/A
d. Repayment Tenure – 58
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 17,50,000
g. Current Balance – ₹ 16,71,942
h. Value of Collateral – N/A
4. Account 4:
a. Date Opened – 31/03/2024
b. Ownership – Joint
c. Rate of Interest – N/A
d. Repayment Tenure – 58
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 4,22,000
g. Current Balance – ₹ 4,01,067
h. Value of Collateral – N/A
5. Account 5:
a. Date Opened – 31/03/2024
b. Ownership – Joint
c. Rate of Interest – N/A
d. Repayment Tenure – 58
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 4,22,000
g. Current Balance – ₹ 4,01,067
h. Value of Collateral – N/A
6. Account 6:
a. Date Opened – 27/03/2024
b. Ownership – Guarantor
c. Rate of Interest – 9.75%
d. Repayment Tenure – 48
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 18,50,000
g. Current Balance – ₹ 16,96,179
h. Value of Collateral – N/A
7. Account 7:
a. Date Opened – 27/03/2024
b. Ownership – Guarantor
c. Rate of Interest – 9.75%
d. Repayment Tenure – 48
e. Loan Type – Commercial Vehicle Loan
f. Sanctioned Amount – ₹ 18,50,000
g. Current Balance – ₹ 16,96,179
h. Value of Collateral – N/A
8. Account 8:
a. Date Opened – 09/05/2024
b. Ownership – Individual
c. Rate of Interest – 9.99%
d. Repayment Tenure – 12
e. Loan Type – Gold Loan
f. Sanctioned Amount – ₹ 1,90,000
g. Current Balance – ₹ 1,90,000
h. Value of Collateral – ₹ 2,98,356
Summary:
1. The individual has a very good credit score (742), largely due to a perfect payment
history, a long credit age (11 years), and no recent credit inquiries.
2. However, the high credit utilization (90%) is a significant area of concern. Reducing
this usage to below 30% could potentially boost the credit score even further.
3. The age of credit (11 years) is a big asset in maintaining a strong score, and the
number of active accounts (8) shows responsible credit management.
Suggestions:
1. Lower credit utilization to improve the score further. Aim for under 30% usage of
total credit limit.
2. Continue making on-time payments and maintain a diverse set of accounts for a
strong credit profile.
☺☺☺
