Today we have grown to a nation in search of instant gratification, buy now pay later syndrome. So, without a good credit rating it will be very difficult to get the things you want at the time you want them. Consumer credit has been accepted as a substitute for cash, so that good credit is the key to the future.
As a consumer it is to your benefit to fully understand how credit works and every aspect of what is involved when you apply for any type of credit, including the major credit reporting agencies that hold your credit report file. If you understand what banks and other creditors are looking for to extend credit to you then you can monitor your financial future and accept only the best choice.
When you apply for credit, lenders want to know about you, your employment history, your income, your assets, and most importantly they want to know about your credit history. A creditor will get a lot of information directly from you by a credit application, then your credit bureau report to verify this information and confirm references and credit scores.
Then upon evaluation of your credit application combined with your credit report, the lender will determine your credit risk and make a final decision on whether or not to grant you credit and at what rate of interest they will charge you. Let's take a deeper insight into the factors that can either be an asset or liability at the time of the application for credit - your credit report.
What is a credit report? Your credit report is your financial resume, a summary of your financial reliability, containing both personal and credit information. Your credit report is obtained from credit bureaus, also credit providers, employers, insurers, landlords and other enterprises that have a legitimate need for such information. The Federal Fair Credit Reporting Act (FCRA) is recommended read.
Rick Sax, Inc.
The Credit Repair Law Firm, Chartered
Under the Fair Credit Reporting Act (FCRA), negative items such as bankruptcies, foreclosures, judgments, late payments and liens may be legally removed when the credit bureaus are unable to verify such incorrect, obsolete information. Visit www.CleaningCredit.com for more information.
Credit reporting and other investigative agencies may also provide background financial and personal information for insurance purposes or to an employer about an employee or applicant for a permissible "employment purpose". A permissible employment purpose is the evaluation of an individual for employment, promotion or retention.
When employers hire a third party to conduct a background check, or obtain reports from outside agencies they are subject to the Fair Credit Reporting Act (FCRA). The FCRA distinguishes between two forms of reports, consumer reports and investigative consumer reports. A consumer report includes credit checks, overall indebtedness, addresses of record, etc. Investigative consumer reports provide in-depth information about an individual's character, general reputation, personal characteristics; mode of living, etc. Due to the more "intrusive" nature of investigative consumer reports, the Fair Credit Reporting Act requires employers who request this type of report to comply with additional notice and disclosure requirements.
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