CONSUMER CREDIT REPORT SHOWS YOUR CREDIT RISK

2007-03-08 10:33:40

( Financial )



Your credit history is recorded in a database known as your consumer credit report. Your creditors provide the data inputted in it.Credit application forms which you have filled up in the past are the sources of the data in your consumer credit report.

Consumer credit report serves as a tool for creditors to objectively evaluate whether you are worthy to be provided with credit or not. Using it actually serves as the first step towards consumer debt management. It helps finance institutions rate your credibility to be provided with credit.

A database of credit history of individuals who availed of charge account, car loan, student loan or mortgage loan is being managed by a consumer credit report agency or a credit bureau. Information in a consumer credit report includes details about your personal data, credit information, public records information and inquiries about your credit history. Lending institutions you have applied credit with can access these informations.

Personal Data

Personal data exclude information about race, religious preferences, medical history, personal lifestyle and political preferences. Informations are limited to name, addresses, telephone number, birthday, social security number, and employers.

Credit Information

Includes information on chronology of credit accounts. In particular, it includes the dates the accounts were opened, loan balances, amount of monthly payments and defaults on repayments. Crucial in credit information is the pattern of delinquency relative to credit payments. This can put you on a negative list with several lenders.

Public Records Information and Inquiries

Public records include records on bankruptcy, state and county tax claims, and overdue child support. While inquiries include the names of the persons and institutions who obtained information about your credit history from the credit bureau.

Negative information on your consumer credit report such as late payments, tax claims and bankruptcy can make it harder if not hinder approval of your loan applications. Positive information, on the other hand, such as history of timely payments helps you obtain beneficial loan terms and lower you over all cost in terms of fees and interest payments.

In the long run it is beneficial for you to strive for a positive consumer credit report.


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