Understanding Your Credit Report
Your credit report is a snapshot of your credit history. It is a file recorded and maintained by credit reporting agencies such as Equifax Canada and Trans Union. Your report is created when your borrow money or are issued any type of credit card from banks, credit unions, retailers and finance companies. Among other things, how you repay these loans/cards with these institutions is reported regularly to the credit reporting agencies.
A credit indicator has been an important tool in the business world. Many institutions use this including banks, lending organizations and other known financial institutions across the globe. There are several reasons why a credit indicator is considered an important tool in every business venture. Among them is that it serves as a model for quantitative elements that is intended towards the measurements of the possibility that a certain client will exhibit a defined behavior over his credit score with a specific lender...
A credit report is a summary of the accounts, balances, regular expenditures and credit history of a person. A negative credit report can lead to missing out on various financial opportunities, lack of employment or denial of an insurance policy. Guarantee of repayments is an important principle in all business transactions. Thus it's very important to mend a poor credit report in order to gain access to such facilities. On the other hand creditors need help from the reporting companies in interpreting and analyzing a report before accepting a client.