Credit reports

Are you aware of the term credit report? What is credit report? Where and how it affects you? In verification process this is considered to be one of the most important reports that every individual should know about it and its purpose and documents associated with this reports.

What is a Credit Report?
If you have a credit card or a loan, or debt collection, then you might have some understanding about the credit report. Your credit report is information on how you handle the credit and debit accounts, how consistent in repaying your credits, your financial situations and your capacity to repay the loans.

How Does Information Get On Your Credit Report?
Credit bureaus or credit reporting agencies maintains your credit reports. Companies who hired us have agreed to send the data to these credit agencies, who in turn will update your information and maintains your credit records on monthly basis. Some companies does not provide the credit report regularly to update  with your monthly payments, but will notify the credit bureaus when you become seriously ignoring your payments.

What are the data Included In Credit Reports?

Credit reports include:

Personal data such as your name, misspellings of your name and addresses, current residing address, previous addresses, permanent address, place of employment, identity verification details such as voter ID, Adhar ID and Pan Card.

Commercial data such as your company license, statutory details and its status.

Financial data such as credit cards and loans, your balance, bankruptcy, credit limit, bank account details, foreclosure, account status, payment history and the lender who retrieves your data for processing the finance for you.

Fraud data such as how many times the customer has failed to repay the amount, non payment and the reason for non payment.

Why you should check your credit report?

You should check your credit report once in a year, to ensure that your data provided by your company and credit agencies or bureau who updates your credit data is accurate. There is always a chance for human error to input wrong data. Checking your credit report could help you to maintain a good score to avail debits and credits with ease.

Why Your Credit Report is Important

Credit score is very important to make decisions for the money lenders before approving your credit cards and loans. Hence checking credit scores has become a part of an application process, if you have a high credit scores it give the banks and money lenders a confidence to lend you money, while low credit scores leads to rejections of cards and loans when you are in need.  So it’s important that you have to ensure you maintain a good credit score and the information included in your report is accurate.