Credit History Is Generally Maintained By Credit Bureaus Set Up In Several Countries

Category: Finance, Credit.

In pure technical terms Credit is an agreement of contract in which a borrower receives something of value at a particular point of time and agrees to repay the lender at some later date.

It is an account of their past borrowing and repaying. Credit history is the record of someone or their organizations financial dealings based on credit. It also reflects on late payments and bankruptcy, if there is any. Credit history is generally maintained by credit bureaus set up in several countries. A credit reputation can also be used as an alternative to credit history. When a customer seeks credit from a bank, his personal inputs are forwarded to these credit bureaus. All of this is required to ascertain the credit worthiness of applicants.

Credit bureaus regularly update the status of the credit holders accounts, verify their personal information, like their address or contact numbers and records even the change of names, if there is any. These records also help track the persons whereabouts and also to ensure that he pays his debts in the stipulated period as mentions in the credit related agreements. Many people face financial trouble at some point of time in their life. Unplanned expenses can disturb otherwise clean credit records. It can result in adverse judgments. Quite obviously adverse credit history will hamper your life in later periods. If you faced such a situation, the creditors may find it very difficult to issue you a credit card.

A poor financial record in the past will deprive you of credit card facilities. Your repayments are not on time. There are many factors which could create adverse credit history and could lead you into trouble, Some of these are: You arrears on your mortgage or other loans. You are over 30 days late on your mortgage or other loans. Your claiming address is false. County debt is going against you. You are not available at the voters list on that address.

All these factors will only add negative points to your credit record. Repossession is another big negative.

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