Credit Reports
Credit Report is like a complete data of your debits and credits. Your credit history and your debts are analyze in this report.The unsecured loans are mostly issue on the basis of this credit report.
Reports that contain the financial status of a person and his credit history and which are used to determine the credit worthiness of someone are called credit reports. For instance, if you pay your mortgage late or have filed for bankruptcy or are denied a credit card then all of this will find a mention in your credit report.
Credit Report also have a list of the balances of the amounts that are due on your mortgage or your credit card etc. If you pay your bills promptly, then this will get reflected in your credit reports. However if there are any negative aspects like your being habitually late with your repayments and if there is any lawsuit pending against you then they will affect your credit report and score adversely.
This credit history that you have becomes the basis of your credit score. The credit score determines your credit worthiness in the market. For instance, you go out to seek a loan, the lender will first enquire into your credit score from the credit bureau and then proceed. If the score is not satisfactory then chances of your loan becoming sanctioned are less. Or if you are given any credit then it will be at a relatively higher rate of interest.
Also having your credit report with you will tell you which areas do you need to improve on.