Credit report – is your financial reputation, i.e. the degree of confidence of various public and private institutions and individuals in you. This means that before they give you a credit card, loan, rent an apartment, etc., you are checked. If you have a good credit report, you will get everything you ask for with the most favorable conditions for you. If you have no the credit report or it is corrupt, then, alas, a bank will refuse you or you will get not very favorable terms.
Literally a credit report – is the history of credit, i.e. the history about how you are taking and giving loans. Thus, your credit report depends on the following factors:
- The number of banks or other financial institutions trusting funds to you (the more the better);
- The length of your credit relationships with these institutions (the longer the better);
- The amounts of loans in each of these institutions (here you should “not to overdo it”);
- Intensity of the receipt and repayment of loans (the more intense the better).
If you do not have a credit report, you will not be able to obtain credit cards. And if you obtain them, it will be only debit or secured, i.e. on collateral of “frozen” funds;
You will not get a direct, i.e., unsecured credit from a bank or other financial organization;
When acquiring a home or other real property, you will have to pay a higher deposit and credit interests will be considerably overrated;
When renting an apartment, your chances of getting a nice flat in a decent area would be lower, in addition you will have to pay a significant deposit for some few months;
When renting an office for a long time, you will be faced with the reluctance of owners to conclude a contract with you. And if the contract is made, you will get less profitable terms and will be compelled to pay a larger deposit;
And most importantly: despite of significant amount of funds that you may have, not you will choose, but you will be chosen that is humiliating to some degree.
Credit history starts with obtaining Social Security number and issuance of credit cards, requires a skilled support and transforms into gold and platinum one in course of time.
Not very long ago loans were affordable to many people and they didn’t miss this chance. To be on the safe side they have to check their credit reports. This is very useful task but it may seem hard for somebody. It is possible to use credit monitoring service – they will help you to understand the reports clearly.