Credit companies, such as banks and lending organizations would often rely on a credit bureau check when it comes to making effective financial decisions. It is essential for a creditor to know the details of a consumer’s credit profile before granting him credit.

In this light, an effective credit check would also benefit both the company and the consumer: the information gathered by the credit bureaus will help entities such as banks and credit card companies determine credit line standards for the protection of their business but still be able to provide people with the best financial services.

The following consumer data, included in a credit bureau check report, is used to determine a person’s credit score:


•    Personal details, such as the person's name, age, civil status, previous and current residence, current salary, social security numbers, contact details and employer history. In line with this, any record of fraudulent personal data will negatively impact a consumer’s credit score;
•    Court records which include lawsuits, tax liens and recent applications for bankruptcy;
•    Previous activities with financial institutions that have provided the consumer with some type of credit line, such as banks, credit card companies, or other lending companies;
•    Current record of loans and liabilities, such as mortgage, unpaid rental fees, credit card debt, and existing car loans; and
•    Account information from one's regular payables such as electricity, water and phone bills. The information includes the amount of payment based on the contract and whether or not the consumer pays his financial obligations on time.

On the other hand, there are also some data which are not included in the credit report, these would include: their current checking or savings account, race, gender, religion, medical history, political affiliation and sexual orientation.

Customers often become worried with their data being handled by external entities. However, it is quite comforting to know that these credit bureau take full responsibility over consumer information and have also developed security practices to protect the occurrence of identity theft. As a matter of fact, credit bureaus encourage individuals to access their credit reports and report inconsistencies to them.  

To further illustrate the relevance of a credit bureau check, let’s say that a consumer has applied for a car loan with a bank. The bank would then obtain the consumer’s credit file from the credit bureau to determine the most feasible credit line for their client. Next, a viable payment scheme as well as an effective invoice delivery schedule will be developed to ensure the timely payment of fees. Once both parties are agreeable to the terms and conditions of the contract, payments will be monitored regularly to avoid rolling interest rates.

Creditors know that hard economic times have led people to look for solutions to their financial woes. This is ones of the reasons why loans and payment schemes are offered to consumers with affordable interest rates. However, consumers would also need to take note that providing creditors with fraudulent personal information will eventually be revealed through a credit bureau check, and this will negatively affect their chances of having a good credit score. Consumers should know that creating an honest and equally beneficial relationship with their creditor is vital when it comes to maintaining good credit health.



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