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Credit Score/Credit Reports Credit Report Articles Everybody has a Credit History and Credit Rating
Credit Score/Credit Reports Credit Report Articles Everybody has a Credit History and Credit Rating
| Everybody has a Credit History and Credit Rating |
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| Written by Administrator | |||
| Saturday, 19 July 2008 10:54 | |||
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Every person has one of these, even if you have never had a credit card or a loan. Credit history is made by credit bureaus and provided to lenders. When you apply for a credit card, mortgage, or bank loan, application gives the lender authorization to verify your credit history. The lender usually requests a credit report from one of the “Big Three” credit bureaus. Bureaus report the raw data of your credit history. Credit companies then provide a credit rating, from the raw data, in the form of a credit score. The lender reviews at your credit score and decides whether to grant you the credit. The lender also looks at your entire outstanding debts, monthly payments, and your credit limits to see how far into debt you could go to max out. Mostly, they are concerned with your record of delinquencies, accounts unpaid, and anything else that suggests how much of a credit risk you might be. All of which is used to compute your credit score. Your credit rating can also be affected by your lack of credit history. If you have no credit history, your rating is very low and you’re a bit of a credit risk.
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| Last Updated ( Saturday, 19 July 2008 10:55 ) |