Log in to become a member of Thomas Morva's Fan Club!
Before analyzing what the effects of a bad credit report could amount to, it is important to understand the concept of a credit report. A credit report is in itself a compilation of your credit history, prepared by the three main Credit Reporting Agencies (CRAs): Equifax, Experian, and Trans Union. The inputs for the reports can come from the creditors who have granted you loans, such as banks, hospitals, landlords, etc.
You may have been late in clearing your medical expenses bills, or have not paid your rent on time. Then there can be a situation when you overdraw on your bank account or did not make your credit card payment on time. In these cases, the hospital, landlord, and the bank would report this information to any of the three CRAs. What you would be left with is a credit report with negative errors on it. Having analyzed the reasons for a bad credit report, it would be useful to study the effects also.
If you wish to buy insurance policies, such as health, life, or dental, you will have to pay higher premiums than otherwise required. If you are an employee in a company, it becomes all the more imperative that your credit report is error-free. This is because many employers do a regular check of the credit histories of their employees. A negative report could prove instrumental in preventing your promotion.
For applicants, also, a negative credit report is a bad news, because it can prevent your getting a job you so desire. A negative credit report could also mean that you are unable to get loans for any major purchases, and even if you do get those, chances are that you would have to pay a higher interest rate.
Keeping this mind, it is important that your credit report should be error free. This is because in all situations inquiries will be made for your applications either for employment or for loans. So the best thing is to manage your finances accurately and judiciously.
» left by Anonymous (280 days 21 hours ago.)
This article was helpful with what I was looking for, but was very general. If the article went a little more into detail it would have provided better information and may help the public understand the topic better. Respond to this comment
Was this article helpful to you? Leave a Public Comment or
Question:
This Article has been viewed 841
times.
Article added to SearchWarp.com on Saturday, February 18, 2006 View other articles written by Thomas Morva(7,174)
If you found this article interesting, you may want to check out:
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
