You might have come across a credit bureau report in various banking and credit card sites. It is essential for you to understand this concept for it concerns all those who apply or will apply for credits and loans.
What is credit bureau report?
A credit bureau report or simply credit history is a record of your personal profile, past borrowings and payments, late payments and even cases of bankruptcy. It would also contain all the accounts that you have applied for. Almost everyone has had to take out a loan or two – car or housing loans, credit card purchases, petroleum cards and many others. But little do we know that all of our personal financial information and history of payments are being sent to bank and credit card companies which are then organized and filed safely for future reference. Once we apply for a new credit or loan, your data would then be taken out as well as viewed and analyze to determine your credit worthiness or eligibility for the application. Depending on your credit score, your loan will be rejected or granted and the fees adjusted according to your record.
Credit bureaus also often make use of different computation or algorithms for determining your credit score but here are few of the factors that can affect your score:
• Payment history – whether or not you are capable of paying on time is a big factor on your credit score. Late payments, repossessions, closures and other negative events can create a big dent on your credit worthiness.
• Type of debt – different types of debt (revolving, installment and open) can have varying points.
Revolving debt usually includes credit and petroleum cards. Having a credit card cancelled or closed-off is a definite no-no is you want to qualify for a loan.
Installments would require a person to pay a fixed price for a fixed period. Though this is included in the risk assessment (reasons not to grant you a loan), if your records show that you comply with your obligations to pay the monthly fee, it will be a plus point for your score.
Open debts are the straight transactions in credit cards.
• Time in file – how old your credit report is. Usually, the older it dates back, the more stable it is.
• Account diversity – having multiple accounts (car loans, housing loans, credit cards and etc.) reflect that you can handle several types of account at the same time.
The computation also varies, so it is a must to have your credit bureau report in order to check for any errors and inconsistencies. There are countless instances wherein individuals are rejected in their applications due to errors in the credit history. Viewing your records helps you address the discrepancies and at the same time, assess how well (or poorly) you manage your finances.
How to perform a check credit?
There are many different services online that offer to credit check for a low price. In South Africa, you have Experian as the one of the most reliable companies that offers this service. You can avail of the free trial version in order to understand how the service works. You will eventually need a credit bureau report in order to manage your finances well and qualify for a loan in the future.
What is credit bureau report?
A credit bureau report or simply credit history is a record of your personal profile, past borrowings and payments, late payments and even cases of bankruptcy. It would also contain all the accounts that you have applied for. Almost everyone has had to take out a loan or two – car or housing loans, credit card purchases, petroleum cards and many others. But little do we know that all of our personal financial information and history of payments are being sent to bank and credit card companies which are then organized and filed safely for future reference. Once we apply for a new credit or loan, your data would then be taken out as well as viewed and analyze to determine your credit worthiness or eligibility for the application. Depending on your credit score, your loan will be rejected or granted and the fees adjusted according to your record.
Credit bureaus also often make use of different computation or algorithms for determining your credit score but here are few of the factors that can affect your score:
• Payment history – whether or not you are capable of paying on time is a big factor on your credit score. Late payments, repossessions, closures and other negative events can create a big dent on your credit worthiness.
• Type of debt – different types of debt (revolving, installment and open) can have varying points.
Revolving debt usually includes credit and petroleum cards. Having a credit card cancelled or closed-off is a definite no-no is you want to qualify for a loan.
Installments would require a person to pay a fixed price for a fixed period. Though this is included in the risk assessment (reasons not to grant you a loan), if your records show that you comply with your obligations to pay the monthly fee, it will be a plus point for your score.
Open debts are the straight transactions in credit cards.
• Time in file – how old your credit report is. Usually, the older it dates back, the more stable it is.
• Account diversity – having multiple accounts (car loans, housing loans, credit cards and etc.) reflect that you can handle several types of account at the same time.
The computation also varies, so it is a must to have your credit bureau report in order to check for any errors and inconsistencies. There are countless instances wherein individuals are rejected in their applications due to errors in the credit history. Viewing your records helps you address the discrepancies and at the same time, assess how well (or poorly) you manage your finances.
How to perform a check credit?
There are many different services online that offer to credit check for a low price. In South Africa, you have Experian as the one of the most reliable companies that offers this service. You can avail of the free trial version in order to understand how the service works. You will eventually need a credit bureau report in order to manage your finances well and qualify for a loan in the future.
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