Credit report or credit history, in many countries, is a record of an individual’s or company’s past borrowing and repaying, including information about late payments and bankruptcy. In the US, when a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau. The credit bureau matches the name, address and other identifying information on the credit applicant with information retained by the bureau in its files. That’s why it’s very important for creditors, lenders and others to provide accurate data to credit bureaus. This information is used by lenders to determine an individual’s credit worthiness; that is, determining an individual’s willingness to repay a debt. The willingness to repay a debt is indicated by how timely past payments have been made to other lenders.
A bad credit report is no doubt, considered a real nightmare by everyone. If you still believe in myths about bad credit reporting, then here is a chance to know what is true and what is not.
