Who Make Credit Report and Why Is It Important for A Person?

All About Credit Report!

Credit Report is the combination of the information that shows your debts and the finances with the way you handle them in the best way. It includes different information about you like your name, address, working address, how you pay your bills and dues, the amount you owe as debt, any black mark of bankruptcy or foreclosure in the past, etc. It includes lots of information about you that shows your credibility in the money market.

Who Make And Manage Credit Report Of Every Individual?

Credit reports are made and maintained by the credit bureaus also known as credit reporting agencies. In the United States, the work of making and managing credit files is given to the three major agencies named Equifax, Experian and TransUnion. All these three agencies collect your information from different sources and make the credit report on their basis. They include all your credit card accounts and loan accounts to have necessary details about your current debts.

Most of them usually take the information about you from the companies you are dealing with regarding your loan. Usually, lending companies update the agencies time to time regarding your debts and your way of making repayment. Some businesses you are dealing with will not update the agency regarding your payment on monthly basis; however, they notify the bureaus only when you come under the serious debt.

For example, when you pay your cable bill then it will not automatically get included in the credit file, but in case you failed to make payment for more than 6 months, it will be listed in your report as a debt collection.

Importance of Credit Report:

Credit report of an individual plays a very important role in different aspects of his/her life. The magnitude of the credit file can be explained through points written below:

• Lending companies like banks, traditional lenders, individual lenders and even online loan providers check your credit report before providing you the approval of your loan as well as credit card.

• Most of them decide the terms and conditions of the deals after analyzing your credit rating only. They offer the deal after checking the risk associated with you.

• Landlords also review credit report of tenants who wish to find home on rent to determine whether you are responsible personal or not. They usually offer the house for rent to people having good credit agency.

• Many reputed and big organizations check the credit report of the job applicant in their hiring process.

This three digit number is like a grade on your credit report. High credit rating provides you numerous benefits and give you title of good or excellent borrower. On the other hand, bad credit rating shows the negative signs and makes you the bad credit borrower.

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