Credit report – its effect on
your personal credit
Lots of people have been denied loan, credit card or other form of
credit because of wrong information the lenders find in their credit report.
Before banks or any other financial institution grant your application for loan
they will first find out about your credit history from bureau by requesting
for your credit report.
Credit report is a compilation of your credit history, past
financial transactions and personal information possible. This report is
usually compiled by accredited agencies known as credit reporting agency.
Credit reporting agencies are organizations that help credit card companies, loan companies, banks, and departmental stores in the country to ascertain the credit worthiness of their would be clients. They provide these companies information about those who are good credit risk and those who are not.
They receive most information
about consumers from loan companies, credit card companies, banks, credit and
lending sources. In this report you will their will be information on your
occupation, place of employment, residence record, court and arrest records,
income status, details on payment of
your past and present bills and loans.
Once they have detail
information from these sources, they give it to any organizations in need of it
when requested. Though they keep on file information concerning you and your
credit, they don’t make final judgments as to your credit worthiness. The
decision is up to the credit card companies or any lender which you are dealing
with.
The credit score is used by banks, credit card companies, loan
lenders and other financial companies to determine your credit worthiness. As a
matter of fact, most lenders often based their charges on information in your
credit report. Also, some employers often consider few information in your
credit report before they employ you. If you have severe financial problems
some will find it difficult to employ you.
Whenever you apply for new
credit card, loan or any form of credit from any sources lenders will base
their acceptance or rejection of your application on your personal credit
report. If your credit report shows you’ve been reliable in the past, then you will
most likely get the credit card or loan you apply for.
However, if you have in one
way or the other defaulted on particular account or you were constantly late in
making payments, it will likely be impossible for you to get the credit you
applied for.
While compiling your report the agency or financial institution that’s giving them the information may make mistake and give inaccurate information about your credit. If you did not dispute this error and demand necessary changes, they will leave it in your report. You can imagine the possible effects on your life in future. Because of this, it’s very important that you check your report at least once a year.
In other to be able to check your report for possible inaccurate
information you have to request for a copy of your report. You can get a copy of this report from credit bureau
because it’s your personal credit file and you have absolute right to know what
is in it.
You have right to know exact information they are giving out concerning your name and credit worthiness. If the report is not good enough or you can proof to yourself that it’s all about your past, you can change it. You can build your new credit worthiness. It’s possible.
