The government of the United States of America keeps a record of all the financial activities of its citizen. It is probably known to every person who has been living in the USA for some time now. The report is known as the credit report and contains all the information regarding the person’s previous debts, current debt’s, bank accounts, mortgages etc. The credit report comes in handy for banks and other institutions when they have to give out loans to their applicants.
The applicants are basically evaluated on the basis of the credit score awarded to them by the govt., according to their credit report. A lot of key factors are involved in deciding the credit score for an individual. Some are:
• Details of the previous payments made by the individual towards his debts and other pending payments.
• The timely payment of the bills of an individual is also an important criterion.
• The money owed by an individual to various institutions also helps in deciding the score of an individual. One may get a negative rating if the amount is too much.
• The time period or the ‘credit’ background of an individual is also important. If it has been too long that one has been involved in taking loans, then it may not go down well with his ratings.