Importance of Credit Reports and Credit Score

Let us first have a glance at what it is?

Credit Reports:

It is a detailed report of a person, it contains credit history which is prepared by a credit bureau. The information is first collected by the bureau to summarize the person's creditworthiness. These report helps individuals to determine loan from banks or lenders.

Credit Score:

It is a three digits numerical grade that evaluates an individual's creditworthiness based on Credit Report. Typically the score ranges between 300 to 850. It is believed that the higher the score, the more financially trustworthy a person is considered.

Now, let's take look at some of its importance.

• A large variety of businesses uses the information from both sources to make important decisions about you.
• Financial institutions thoroughly check it before approving any type of loan or credit card application.
• Even the Insurers uses this reports to determine your risk profile and establish your monthly premiums.
• To verify the Employers and landlords check your credit score to determine how responsible you are.
• Both the report and the score affects your life as well, so it’s important to build a positive credit profile and establish good credit habits.
• Buying a house is the most difficult task to achieve in life and if you don't have a good credit score, no banks would let you any loan.
• When Starting a business, you may need a business loan, for which it is an important indicator. It will determine your eligibility for Business Financing.
• A good score of credit ranging between 700-750 acts as an important factor in obtaining any type of financial assistance, as it is considered a very good score. Many banks consider it before giving a loan.

Hence, A true advice can be never delay in paying, weather it is a credit card bill or any due. Maintain your credit profile well. We at Debt Nirvana help you make Credit Reports that you can present for any financial assistance. For more information about our service visit our website or contact us today.