Credit Checks- A Virtue Figure
Credit checks play a very important role as they act as guide stones in taking well informed decisions about borrowing or lending money. They are the true representatives of ever increasing credit delinquencies which have further highlight the importance of analyzing the financial standing of an individual.
In technical institutional language credit checks are done in order to ascertain the credit score of an individual. The numerical values in the report are assessed to determine whether the applicant qualifies for a loan or for any type of credit. The score is primarily based on the repayment strategy used by the applicant. If the applicant pays all the dues well on or before time then there are higher chances of having a good score thereby qualifying for any form of credit. However, it can be vice-versa as well. When an individual has a bad credit score it lists him/her in the list of bad debtors invariably making him non-eligible for applying for any form of credit.
Therefore, it is very important to get a credit check done via a source which is authentic and genuine. Usually credit checks are done by lending agencies like banks and credit card companies. The Privacy Act has entitled all the individuals to a free copy of their credit report. The act clearly states that any individual can ask for a copy of their report by writing to the agency and can expect a reply to the same within a period of 10 days.
The information which forms part of such credit reports includes:
Name
Residential Address
Date of Birth
Drivers License Number
Credit applications and enquires made in the past 5 years
Records of Current Credit Accounts
Bankruptcy information
Overdue accounts statement
Judgments
There are various agencies who collect such information and since they are governed by the Federal Government thus they are bound by certain rules and regulations leaving no area of personal biasness of any kind.
It is vital to have a good credit score as it is same as having a long time investment which offers you benefits when one needs it the most.
For more information about Credit check Australia and credit check, please visit www.creditcheckaustralia.com.au
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