What is a credit report and how is it calculated
                     What is a credit report and 
how is it calculated?
When you apply for any line of credit, your credit 
eligibility is determined. There are various ways in 
which a loan provider gets hold of your credit 
record and credit eligibility. It is important to meet 
the credit eligibility when you look out to borrow. 
An unsecured form of loan like personal finance 
needs good eligibility because it is an unsecured 
loan. The most important thing that a loan provider 
checks is your credit report. 
What is a Credit Score?
• A credit report is a detailed statement that has all 
your credit records and activities stated. It 
comprises all the payments, debt repayment 
track, credit accounts and various credit 
activities. The report will have all the details 
about your past financial activities. Based on this 
credit, a credit score is given. This statement 
offers a clear understanding to the loan provider 
about the financial health of a borrower. 
Maintaining a good credit report will open up 
new opportunities and borrowing will be easy. 
What is included in a credit report? 
Credit mix: The credit mix is the types 
of credit lines that an individual has. It 
includes all the credit products and 
debt that a borrower has borrowed 
from any financial institution. This will 
constitute 10% of the entire report. 
Maintain a good credit mix with a 
balanced line of credit. That would 
include instalments and revolving 
credit. Apply For 
home improvement loans.
Why is credit report 
monitoring important? 
• Credit accounts: Credit accounts are 
an important part of your credit 
report. It includes all your credit 
cards, bank accounts, and loan 
accounts. When you follow them and 
keep them updated, you will have a 
positive credit report. 
• The type of credit used counts for 
7%-10% of a credit score and shows if 
the borrower has a mix of 
instalments credit which includes car 
loans or home loans and credit cards. 
How to Improve Your Credit 
Score?
• Payments: Payments are the most 
important element in the credit report. 
It accounts for any payment. It could be 
a debt repayment or a credit card bill. 
Payments can damage your credit report 
and any delay or default in payment will 
be registered on a credit report. So make 
sure you consider this as important.
Clix Capital Services Pvt. Ltd.
Address: 
901b, 9th Floor, Two Horizon Centre, DLF Phase V
Gurgaon, Haryana, India – 122002
Phone Number: 1800 200 9898
Website: https://www.clix.capital/check-credit-score/