A credit report shows your credit history performance including and not limited to information on bill payments, loans, current debts, other financial and personal information. A credit report entails all the relevant information that lenders may require as they decide whether or not to approve you for credit and determine what interest rates to charge you. Other non-financial information found in the report include, your work history and current place of work, personal address and contacts, whether you have been sued, arrested or filed for bankruptcy.
Many stakeholders use and rely on the credit report as a basis for decision making. They include, employers; who need to find out how you manage your finances and gauge your responsibility before employing you, insurers; when they are calculating the monthly premiums to charge you and deciding whether or not to accept to cover you, rental property owners; especially in lease agreements, they require and need to ascertain that you are credit worthy and get the assuarity that you can actually pay debts and most importantly financial lenders including banks, which must check your past debts and payment and default history before extending any credit facility.
What kind of information is on a credit report?
Basically a credit report shows past debts, payment schedules, current debts and payment plan underway, other financial and personal information directly related to your credit matters and comments from the necessary authorities on the issue. Normally, it is very easy to comprehend the information contained in a credit report. Consistent technology advancement has allowed easy access to a credit report at will.
Need for the report maybe random and spontaneous calling for quick access through the internet. Portable gadgets such as laptops, tablets and mobile phones, with appropriate applications, allow receipt and access to a credit report. In addition, manuals and tutorials are provided for by relevant bodies such as banks and lenders, explaining the contents of a credit report.
Therefore, a credit report is actually a summary of you credit wise. In matters finances, your credit report is the sole reference point and the only determinant of what happens next after you apply for credit. A credit report summarizes all the information and aggregates it all to give a credit score. This is the rating of an individual in terms credit worthiness. The score varies in different credit score models such as the FICO and many others, averagely ranging between 300 - 850.
How to find out what is on your credit report?
Credit reporting agencies are responsible for providing a credit score to help consumers understand what lenders see when making decisions about approving or extending loan and credit facilities. The agencies apply their field expertise to give a fair rating as per the content of the credit report. In the world over, most credit reporting agencies undertake the whole process and thus earning themselves credibility.
With the larger percentage of the world’s population living and operating on credit, the predicament on storage and access to credit information presents itself. To seal the gap, credit bureaus purposely exist to hold credit information relating to individuals and businesses.
What is a credit reporting agency?
There are different agencies and bureaus in different countries, subject to the laws and regulations standing in the specific country. Credit bureaus allow third parties the opportunity to easily access your credit report and score by following set procedures. These bureaus are credible sources as they give correct information based on your credit history facts.
For the sake of your financial sanity, kindly ensure you maintain a clean credit report free of errors by ensuring you pay your bills and debts on time. This is the key to the best credit facilities, terms and lowest interest rates in the market.