What is a credit report?
A credit report is a record of your credit payment history compiled from different credit providers.
Why is it important?
Businesses check your credit report to make decisions about you. Banks check your credit report before approving you for credit cards and loans. Landlords review your credit report to decide whether to rent to you. Employers check credit reports as part of the application process to reduce the risk of theft or fraud.
How is the credit report made?
Some factors are analysed and computed into a score (credit score) ranging from 1000-2000 by the credit bureau. These factors include:
1. Utilization Pattern
- This refers to the amount of credit amount owed/used on accounts by individuals.
2. Recent Credit
3. Account Delinquency Data
- Presence of delinquency (late payment) on your loan accounts will reduce your credit score.
4. Credit Account History
A consumer with long established credit history is deemed to be more favorable or a reliable borrower when compared to one who has limited or no credit history.
Accounts with history of prompt payments will help to boost your credit rating.
12 months of account repayment conduct (closed and defaulted accounts are also included) as displayed under the Account Status History in your credit report is used for score calculation.
5. Available Credit
- This refers to the number of accounts available (open or active) for credit.
6. Enquiry Activity
The number of new application enquiries found in your credit
Each time a potential bank/financial institution pulls your credit report in response to a new loan application, an enquiry is placed on your file. Having too many enquiries in your credit report indicate to lenders that you are trying to take on more debt, therefore increasing your credit exposure.
How to check your credit score?
Opt for a free copy through HSBC Promotion
Request for a free copy if you have recently applied for a new credit facility with any of CBS members
Purchase a copy of your credit report here ($6.42 incl. GST)
Source
What is a credit report?
A credit report is a record of your credit payment history compiled from different credit providers.
Why is it important?
Businesses check your credit report to make decisions about you. Banks check your credit report before approving you for credit cards and loans. Landlords review your credit report to decide whether to rent to you. Employers check credit reports as part of the application process to reduce the risk of theft or fraud.
How is the credit report made?
Some factors are analysed and computed into a score (credit score) ranging from 1000-2000 by the credit bureau. These factors include:
1. Utilization Pattern
2. Recent Credit
Lenders may perceive that you are over-extending yourself if you have newly booked credit facilities within a short period of time.
Consumers are advised to apply for new credit in moderation.
3. Account Delinquency Data
4. Credit Account History
A consumer with long established credit history is deemed to be more favorable or a reliable borrower when compared to one who has limited or no credit history.
Accounts with history of prompt payments will help to boost your credit rating.
12 months of account repayment conduct (closed and defaulted accounts are also included) as displayed under the Account Status History in your credit report is used for score calculation.
5. Available Credit
6. Enquiry Activity
The number of new application enquiries found in your credit
Each time a potential bank/financial institution pulls your credit report in response to a new loan application, an enquiry is placed on your file. Having too many enquiries in your credit report indicate to lenders that you are trying to take on more debt, therefore increasing your credit exposure.
How to check your credit score?
Opt for a free copy through HSBC Promotion
Request for a free copy if you have recently applied for a new credit facility with any of CBS members
Purchase a copy of your credit report here ($6.42 incl. GST)
Source