New Delhi, June 5 -- Banks and NBFCs look at the applicant's credit score and report while underwriting their loan or credit card application. While the credit score is a 3-digit number, the credit report has a lot of details about the applicant's closed and open loan and credit card accounts. Some of these details related to the payment status include whether the payments are made on time, how much the delay is (if any), whether the recovery is doubtful or the outstanding has been settled, etc.

Credit information companies (CICs) like CIBIL use various abbreviations/terms to reflect these payment statuses in the credit report. Understanding these terms can help an individual manage their credit profile well. In the article, we will exam...