credit reports
Credit Reports
Thursday, March 13, 2008
Credit reports
Credit report is a record of individual’s or company’s past borrowing and repaying , including information about late payments and bankruptcy. Credit ratings are determined
using payment records , control of debt and credit inquiries.
A credit bureau may sella person’s contact information to an advertiser purchasing a list of people with similar characteristics like homeowners with excellent credit. A creditor can check a person’s credit periodically.
When customer fills out an application for credit from a bank or credit card company their information is forwarded to credit buereau.
This information is used by lenders such as credit card companies to determine an individuals means and willingness to repay an indebtedness. This helps determine whether to extend credit , and on what terms . With the adoption of risk based pricing on almost all lending in the financial services industry , this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
Posted by Steva at 11:16:22