A credit record figure is a unique number with what you are assessed by a financial organization like a bank, an insurance firm, or any else financial institutes. In case you are filing for a loan, the institution or the bank would wish to accumulate as many information as possible about you as viable. It will be not possible for the authority to review your financial background on an individual basis. They would need data like your profile and work, data on previous loans, data on current loans and things like that.
The Fair Credit Reporting Act needs every national credit writing firms — Equifax, Experian, as well as TransUnion — to offer you a free of cost duplicate of your annual credit report,which you can get from websites like www.FreeAnnualCreditReport.com Official Site, when you ask for one, once in each 12 month period. The FCRA increases the efficiency and secrecy of data in the records of the country’s credit recording firms. The state’s customer protection Bureau, The Federal Trade Commission (FTC), makes the FCRA on credit reporting companies.
The reasons why Annual Credit Report is very important:
- Before approving loans and credit card the bank checks and verifies your credit score thoroughly as the credit score reflects your past credit history and your availability to pay back the money which is lent to you.
- A Credit report reflects your credit score. This score helps the bank or money lending organization to determine what type of loans the person will qualify for and the interest rate which will be levied on the loan sanctioned to the person.
A credit report comprises data on your current residence, the way you meet your expenses, and if you’ve been accused or had ever filed for nonpayment. National credit recording firms trade the data in your statement to lenders, bankers, employers, and more companies that employ it to assess your requests for credit, security, employment, or leasing a house or apartment. To know more to you refer to websites like www.AnnualCreditReport.com.