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What is a credit report? Credit report
is simply a detailed documented report regarding
a borrower’s past and present credit
standing. A credit report shows all the borrower’s
credit transactions, past and present creditors, payment
habits and manner, kinds of credits he availed, credit
limits he has been approved of and more.
Well, aside from above mentioned, A credit report at
times, also shows the borrower’s bankruptcy filing,
support obligations and other very personal matters,
that may also affect the person’s way handling credit.
The information that may be included in the credit
report depends upon the credit agency that provides the
credit report to the
lender.
Who has your credit report file? Credit agencies, banks,
and some financial
government institutions have files of
credit report and may be looked into by authorized
persons at any time. |
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| Finance companies, lending
institutions, credit card providers, collection
agencies, major retailers, and banks as well are the
ones who provide information in your credit report.
That is why don’t be surprised that a credit report
shows all things which you wish have not been recorded.
(Especially if they are not so good).
However, many credit reports are not precise. There are
cases that credit reports vary from what the borrowers
know. There are some inclusions that should not be
there. Some borrowers are surprised how the credit
report appears. Of course, the borrowers know which
should be there and which should be not. The borrower
themselves are the owners, the users, the primary
account holders who know all their credit, past and
present situations, so they are the ones who know the
right information that should be shown in their credit
reports. There are times when mortgages are not
reported, so they don’t show up in credit reports.
But for lenders who read these reports, they do not know
what’s the real story. They plainly rely on these credit
reports. No one can blame them. Credit report’s real
purpose is to provide information to these lenders who
doesn’t know a thing about their borrowers. Right?
Credit reports are important in building a borrower’s
reputation. Whether it is good or bad; credit report in
an informative way, reflects the personality of the
borrower. Credit report is also an approach that makes
lenders give their trust and confidence to the borrower.
Credit report hence is a very powerful tool that can
make or break a person’s credit standing. That is why it
is best to have your credit report checked for any
discrepancies so that there will be no misunderstandings
on your background check.
Credit report may just be a simple paper, or a document.
But see, it is the only way that lenders can know what
you did, what you have been doing with these loans, and
more likely what you will do. Credit report hints us
that all we do can be known. So for those who still have
good credit status, do not do things that may stain your
credit report. A simple paper can tell many things about
you. It can really be an upper or a downer.
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