Consistency is the key to various things in human life. Being creditworthy consistently is required for
various reasons, which can be possible with a good credit score. For all these, maintaining a credit
report is necessary. A credit report is a detailed breakdown of a person’s credit history. The report is
prepared by a credit bureau. Credit bureaus collect information about the individuals and prepare
credit reports depending on that information.
Information Included in A Credit Report:
A credit report is a combination of information related to your credit and debt. The information
required for a credit report includes- (Information Credit – https://www.creditgenie.co.za)
The amount of debt you have accumulated
Your permanent address
The place you work
About your bill payments
Whether you have filed any bankruptcy
Usually, credit reports are prepared based on basic information such as name, address and the place
of work. Besides, it includes information about your credit cards and loans, if there is any. Financial
information such as credit cards, credit limit, account balance, account status and type, all are
included in the report. Payment history and the amount of loan is also essential.
You need to check your credit report at least once in a year to ensure that all necessary information
is correctly included in it.
Importance of A Credit Report:
A credit report is requested by various businesses to make decision about you. For instance, banks
check credit report before approving your loan application. Apart from this, there are some other
conditions that demands good credit report.
Approval of Loan
When you apply for a home loan or car, the money lender checks whether you have a good credit
report or not. Without having a maintained report and a good credit score, you cannot get approval,
as the loan provider will consider it risky to give you loan. A bad credit score may also have an
impact on your interest rate, even if the loan is appr