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General Credit Report Facts

By Janet Lacey
Published: Saturday, December 5th, 2009

Financing companies that dominate the whole financial business are those that maximize the available information that they can get hold of. Among these companies are banks, financing agencies and even those who are in the rental business. These companies dictate the pace of the whole financial business by sifting the best investments among the many willing participants. It is a hard fact that not everyone who would want to participate in the financial market will be entertained. There are only those that stand out as investments and there are those that appear to be liabilities. Companies make use of credit reports to have a narrative assessment of the credit worthiness of an individual.

Credit reports are one of the two often used evaluative tools in the financial market. Detailed evaluations are needed to prove that someone is credit worthy enough to be an investment to the company. Evaluations such as this are used internationally mostly by crediting and financing companies because they are the companies that take many risks in approving even a small scale loan proposal. Indeed, money fuels these companies to take active participation in the whole economy by providing financial support to the other sectors of the economy.  

A credit report generally is a detailed story of the financial activities of an individual for the past seven to ten years. It is also a documentation of the decisions of the individual in line with the whole economy. This document would most probably include the individual’s personal information, credit history, payment history and even his or her job experiences. Although credit reports from different credit bureaus may vary in format, the essence of the whole document will nonetheless be the same. There are three main credit bureaus in the United States. These are Equifax, TransUnion, and Experian. These three credit bureaus are mandated by the law to provide these free reports in an annual basis.

Credit reports are held as a definitive factor in applying for a loan or other financing proposal. A bad credit report would automatically translate into less probability of being approved. It is essential for those who would want to get a loan for a business or be financed for education to maintain at least a decent credit worthiness qualification. It is inevitable that the financial market will have to eliminate in their list of possible investments those that are unable to appear as credit worthy.

Many individuals spend too much money just to appear as good and worthy company investments. It is irrational to assume that all these money are just wasted because some credit tips and advices really work for some. A good credit report under any qualification cannot and will not be accounted for through monetary compensations alone. Getting a good one would require caution and awareness. The financial market requires caution for those who are about to take agreements that they cannot hold on to. This market also requires awareness for the possibilities that simple actions can make or break any aspiring individual. Failing to be aware and cautious enough can turn the most credit worthy person into a risky liability that financing companies would not engage any business with.

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