Credit Report
Details of all your financial activities involving credit, are recorded by the credit reporting agencies. They compile a credit file on
individuals, from information provided to them by businesses that have advanced credit. They will provide a credit report to any authorised
organization requesting one, for a fee.
Whenever you apply to have credit, in one form or another, the lender, whether it be a bank,
mortgage provider, credit card company, a utility or a store, will want to check out your credit worthiness. Can they trust you to repay your
borrowing on time, and in accordance with a credit agreement? How much do you already have in existing loans and commitments that might
affect your ability to repay new borrowings?
If you've never bought anything on credit or been loaned money from a bank, for example, how are they going to know how trustworthy or credit
worthy you are? You might look honest and intelligent, be well spoken and polite, but these days, if you want money advanced to you on credit, it
will usually only happen if you have a reasonable credit report.
When you borrow money you make a promise to repay it at a certain rate, and over a specified period of time. Any deviations from agreements
you have made, will be recorded on your credit file and will show adversely in your credit report. If you have been late in paying monthly bills
for services like the telephone, gas and electricity, that will be recorded.
The various financial institutions who refer to the credit reference agencies, have access to the same information as each other, but they
tend to interpret it in different ways. Lending criteria differ from one institution to another to the extent that one might advance considerably
more cash than another. But this is only where you have a positive credit report.
If you have a credit report that shows you are a persistent late payer, that you have court judgements against you for non-payment, or
even that you are indebted up to your eyeballs and maxed out on everything, then your credit report will give you a poor credit rating and
your chances of gaining further credit are almost non-existent. When your credit report is poor, you will need to take steps to improve it. This
is known as credit repair, and is covered in more detail on this website.
More Credit Report Information
Credit Reports
Credit Report of 3 Credit Bureaus
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