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Credit report

Credit history or credit report is, in many countries, a record of an individual or business borrowing and repayment past, including information about late payments and bankruptcy. The "credit reputation" can either be used synonymous to credit history or credit score.

United States, when a customer completes an application for credit with a bank card company, or a store credit, their information is forwarded to a credit bureau. The credit bureau matches the name, address and other identifying information of the credit applicant with information retained by the Bureau in its files. That 's why it is very important for creditors, lenders and others to provide accurate information to credit bureaus.

This information is used by lenders such as credit card companies to determine the creditworthiness of an individual, is the determination of the will of an individual to repay a debt. The willingness to repay a debt is indicated by how timely past payments have been made to other lenders. Lenders like to see the obligations of consumer debt paid on a monthly basis. Calculate a credit score.

Credit ratings vary from one model to mark the notation, but in general, the FICO scoring system is the norm in the United States, Canada and other areas worldwide.The factors are similar and may include:

Payment History (35% contribution on the FICO scale) - An information negative credit rating can lower a consumer or a score. In general, scoring systems look all risk following negative events, charge offs, collections, late payments, foreclosures, foreclosures, settlements, bankruptcies, liens and judgments. In this category FICO considers the seriousness of the negative element, the age of negative elements and the prevalence of negative elements. Newer is worse than the old. More serious is worse than less severe. And it's worse than for many years. Debt (30% contribution on the FICO score) - This category considers the amount and type of debt carried by consumers as reflected in their credit reports. There are three types of debt considered.

Revolving debt - the debt is credit card, debt card detail and some fuel card. And while the lines of credit are revolving terms of most of the debt in question is true revolving unsecured debt incurred on the plastic. The most important of this category is called "revolving utilization," which is the relationship between aggregate consumer credit card balances and available limits credit card, also known as "open to buy."This is expressed as a percentage and is calculated by dividing the overall balance of credit card global credit limits and multiplying the result by 100, giving the percentage of use. The higher the percentage the lower your will probably score. Therefore the closure of credit cards are generally not a good idea for someone trying to improve their credit score. Closure of one or more credit card accounts will reduce the your total available credit limit and may increase the percentage of use unless the cardholder reduced their balances at the same rate.

Installment credit - is debt where there is a fixed payment for a period of time. A car loan is a good example that you usually make the same payment for 36, 48 or 60 months. While the debt in installments is considered in the risk scoring systems, it is far behind in its large debt behind the revolving credit card. Installment credit is generally secured by an asset like a car, house or boat. As such, consumers can make extraordinary efforts to make their payments so that their property is not taken by the lender in case of default.

Open Debt - This is the least common type of debt. Is the debt to be paid in full each month. An example is one of many credit cards that are "pay all" products. The American Express Green Card is a common example. Open the debt is treated as a debt of revolving credit card in the old version of the FICO scoring system, but is excluded from the calculation to use renewable in new versions.

Time in the file (Age Credit file) (15% contribution to the FICO scale) - Former your credit report more stable it is, in general. As such, your score should receive a credit report old. This "age" is determined in two ways, the age of your credit and the average age of accounts on your credit report. The age of your credit report is determined by the oldest account "the opening date," which sets the age of credit. The average age is determined by averaging the age of each account on the credit report, whether open or closed.

The diversity (10% contribution on the FICO scale) - Your credit score will benefit from a diverse set of account types on your credit report. With experience in several types of accounts (installment, revolving, auto, mortgage, cards, etc.) is generally good for your score because you are evidence of the ability to manage different types of account.

The search for New Credit (credit checks) (10% contribution on the FICO scale) - An investigation is noted each time a company requests some information from a credit consumer. There are several types of inquiries that may or may not affect credit score of person. Applications that have no effect on the creditworthiness of a consumer (also known as "soft inquiries"), which remain on your credit reports for 6 months and are never visible to lenders or credit scoring models, are:

The screening survey in which a credit bureau may sell the coordinates of a person to an institution that issues credit cards, loans and insurance based on certain criteria that the lender has established.

More than one credit history of a person
In some countries, people can have more than one credit history. For example, in Canada, although most Canadians are not aware of this, each person applying forcredit before obtaining a Social Insurance Number has two separate credit history, one with sin and a without NAS. This is due to the structure of credit reports in Canada.This can lead to two completely separate parallel histories, and often leads to inconsistencies (although typically the person will never notice the inconsistencies), because when a lender requests the credit report of someone with sin, what the lendergets is different from what it would have received if he asked the report without providing the sIN. This is because, contrary to popular belief, when someone gets a new SIN for whatever reason, the two credit files are never merged unless the personspecifically asks. As a result, a record with SIN zeroed is kept separately from a record with SIN. Note what happens without the person even knowing it.