A_Good_Credit_Report___The_Key_To_Cheap_Finance

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					Title:
A Good Credit Report – The Key To Cheap Finance

Word Count:
443

Summary:
Is your credit report important? There are a lot of people who would not
consider their credit rating as something too important to them in their
life. There are others who, while recognising its importance, would not
be overly concerned about the issue or understand the reasons for its
importance.


Keywords:
credit, ratings, leasing, renting, score, terms, report, cheap, finance,
lenders


Article Body:
Is your credit report important? There are a lot of people who would not
consider their credit rating as something too important to them in their
life. There are others who, while recognising its importance, would not
be overly concerned about the issue or understand the reasons for its
importance. Well, to those people, they should at least be aware of some
of the uses that are made of credit reports in the world in which we
live.

<b>Lenders</b>

While it may seem obvious to state it, credit reports are predominantly
concerned with assessing the risk involved in lending money to you.
Lenders are obsessed with one thing, getting repaid, and their entire
industry revolves around making this occur. Therefore, they have
developed the credit score that will assess your likely hood of repaying
them and this is then used to either approve or reject your application
for credit. While this is the basic purpose, some more sophisticated
lenders desire to get in on an ever larger share of the market and in
order to lend to higher risk borrowers, they create different categories
of loans which people with lower scores can qualify for. These loans will
invariably have higher interest rates and other less favourable
conditions and this will be the price you pay for having a lower credit
rating.

Since loans are used to finance homes, education, cars, and most other
large purchases in life, the inability to get access to credit, or only
to be able to get it at less attractive terms and rates, is a
substantially reason to care about your credit report and try to keep it
in as good a condition as possible.

Credit reports are also used when you apply for renting or leasing
accommodation. This is usually because the landlord wants to be fairly
certain that you’ll be able to pay your rent as it falls due. So keeping
your credit score healthy at this stage will pay off if you need to be
approved for renting or leasing residential property.


There is also a trend among employer to start using credit ratings when
assessing job applicants. The reasons they are making use of credit
reports are of course different for every employer but there is a
consensus that a healthy credit report and a good past record of meeting
financial commitments is a good sign that the job applicant is someone
reliable and worth employing. While it does seem slightly perverse that
the very people that will need a job the most are precisely the ones that
can be denied it but that’s the direction things are moving in.

				
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posted:10/10/2010
language:English
pages:2