It is the responsibility of ayt creditor out there to understand a credit report. Understanding such an aspect would mean that one knows that a credit report is a record of an individual’s or company’s past borrowing and repaying records, together with information about late payments and bankruptcy.
In many countries, when a client applies for credit from a bank, store or credit card company, their records are sent to a credit bureau for verification or credit checkup. The credit bureau conducts a credit checkup of the client’s name, address and other identifying information on the credit applicant against information retained by the bureau in its files. This is why it is of paramount importance for creditors, lenders and others to provide truthful information to credit bureaus.
In South Africa, a country whose collection of credit avenues has hit 19 million credit active consumers, customers are on dissimilar financial platforms with diverse payment modalities. This therefore means the management of these credit facilities is distinguished by operational traits and indicators of payment, delayed payments, defaults.
The above information is normally used by lenders such as credit card companies to decide an individual’s credit worthiness; that is, determining an individual’s ability and track record of repaying a debt. Such indicators are usually compiled every 30 days to form a credit report and this will be used by lenders to see if the consumer redeemed his debts regularly and on time.
In general, industry participants maintain that the data in credit reports is very accurate hence individuals have also benefited from this credit facility because with a credit report and alert, clients get SMS or email alerts when anything grave happens on the credit report. This also means that any irregular or fraudulent activities on a client’s credit record can also be communicated to the affected individual.
The introduction of credit reports in financial firms has augmented the management of credit keeping both finance and individuals to be well informed about credit matters.