Let's start by defining a credit report. One of the three major consumer credit agencies compiles your credit report, which is a record of your debt management history. Credit reports include your borrowing history, including loans and credit cards, as well as your payback of those debts.
Credit cards have a reputation for causing a lot of people to drown in a huge pile of debt. While getting a credit card nowadays is a piece of cake if you have the required documents, utilizing them is a far more difficult challenge. They have the power to bury you under an avalanche of perpetual debt, but they can also help you improve your financial health by potentially boosting your credit report and having a substantial beneficial impact on your CIBIL score.
As society is becoming more consumption-driven, consumers’ dependence on credit has increased manifold. Credit essentially is a financial borrowing from a lender with a promise to pay back the amount in the agreed duration. A lender aims to profit by extending credit to the consumer at an interest rate, depending on how risky the credit would be. The ability of a consumer to repay the credit/loan is gauged through a “credit score”.
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