When a person borrows from another individual or financial institution, it creates a credit relationship. The one who borrows money becomes the debtor, and the company or person who lends the money is the creditor.
There are certain terms and conditions which are associated with the credit arrangement, including the amount that the debtor has to pay, the time period within which they have to pay, and the details of all the other terms. These terms are clearly written in the documents that one has to sign to obtain the loan amount. All these issues of the credit arrangement looks simple and neat. However, there are many who find it difficult to perform within the agreed upon guidelines. Those people who cannot perform as agreed must eventually face the music of their non-performance, and their credit report will reflect the results of their actions.
A Credit Report is a statement which provides information of all the financial activities undertaken by any person. The information may also includes public records, credit inquiries about an individual, and the list of the individual's complete credit details.
There are certain credit reporting agencies in the country, which prepare and maintain your credit report and score, and supply it to the financial institutions who then use it to analyze the person who has come to them for financial help.
Therefore it is very important for a person who is going to the bank or other lender to have a positive credit score when they are about to take out a loan. It especially helps them in getting the loan during their tough times when there are fewer people in this country who are able to maintain a good credit score.
Those who due to some avoidable circumstance have not followed through on paying their loan on time, and subsequently caused damage to their credit score, can certainly improve it within a short time, but such recovery requires disciplined and dedicated efforts.
To start with, one should try to maintain the good performance of those credit accounts which already have a good payment history, and not let these accounts get behind. For those accounts which are not in good shape, one should try to get their payments up to date as agreed, and not have any more late payments.
There are certain terms and conditions which are associated with the credit arrangement, including the amount that the debtor has to pay, the time period within which they have to pay, and the details of all the other terms. These terms are clearly written in the documents that one has to sign to obtain the loan amount. All these issues of the credit arrangement looks simple and neat. However, there are many who find it difficult to perform within the agreed upon guidelines. Those people who cannot perform as agreed must eventually face the music of their non-performance, and their credit report will reflect the results of their actions.
A Credit Report is a statement which provides information of all the financial activities undertaken by any person. The information may also includes public records, credit inquiries about an individual, and the list of the individual's complete credit details.
There are certain credit reporting agencies in the country, which prepare and maintain your credit report and score, and supply it to the financial institutions who then use it to analyze the person who has come to them for financial help.
Therefore it is very important for a person who is going to the bank or other lender to have a positive credit score when they are about to take out a loan. It especially helps them in getting the loan during their tough times when there are fewer people in this country who are able to maintain a good credit score.
Those who due to some avoidable circumstance have not followed through on paying their loan on time, and subsequently caused damage to their credit score, can certainly improve it within a short time, but such recovery requires disciplined and dedicated efforts.
To start with, one should try to maintain the good performance of those credit accounts which already have a good payment history, and not let these accounts get behind. For those accounts which are not in good shape, one should try to get their payments up to date as agreed, and not have any more late payments.