How to use Credit Report in a better way?

by Christian Silmaro Christian

A credit report is a detailed analysis which shows the credit history of an individual. Generally it is done by the credit bureaus which collect the information to make sure that the report of the credit status is created on the basis of this information.

Who needs this report?

Generally, it is been needed by the lenders wherein some other details that are even added for determining the credit worthiness of the borrower.

Importance of Credit Report

Generally, in developed countries like USA or Canada, getting this reporting done is given high importance. In the United States, various reporting bureaus like transunion and Equifax are available which conducts this reporting.

All of them collect the information which is associated with the personal information of the consumer and their bill paying habits that generally creates a unique report which is always required for loan processing purpose.

Nowadays even in the developing countries like India, credit reporting has been given much importance. Credit Information Bureau India Ltd (CIBIL) is the premier credit information bureau of India which conducts this check. Herein they mainly require the PAN Card and even Adhar Card of the borrower and using these details they are able to furnish the total credit history of the lender.

What’s inclusive in this Report?

Following are the information, which are generally included in this kind of report

· Previous address and current address of the borrower

· Identification proof details

· Employment history

In short, such type of a report generally includes the summary of the credit history and generally it shows such accounts which have better standing; however if anyone has filed bankruptcy, then also the same information is revealed there and it stays for at least 10 years.

How can you obtain a flawless report?

In India, generally before processing any kind of loan, bank or any other financial institutions get this credit check done from CIBL. This is done mainly to ensure that the individual to whom the loan is sanctioned; at least have the capability to pay it off. So before applying for any loan it is very important that you know, about your own rating. Therein you need an advice of an expert. Amanath Recovery Solutions is one institution wherein you can avail such assistance at an inexpensive price and that to be in the most systemised manner.

No one has no control on the report which is been published by the Credit Bureau to the lending institutions; however financial advice is very important to guide you in the best possible manner.