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Credit report is a record of a person’s previous borrowing, repaying, late payments and bankruptcy. These information and records help in developing a credit rating for an individual which further helps the lenders and creditors to check the ability and willingness of a person to repay his/her debt. The ability can be differentiated with income and the willingness means the regularity of the previous payments. There are several businesses and companies which make money by offering the user to check his/her credit report. By checking the credit report, a user can verify the information in those reports. These companies give out a lot of advertisements. But, US laws have made it mandatory that TransUnion, Equifax and Experian (the three primary credit reporting agencies) should provide a copy of the credit report once annually to any user that requests it. Users can also check several websites to obtain their credit reports. It should be noted that even while acquiring free credit reports, the user might witness some advertisements that offer extra services for credit checking which may cost money. In order for users to receive their free copy of credit report, the process should be followed carefully and the pay services should be declined. It should also be noted that it isn’t the goal of the credit report to inform a user of his/her credit rating. Instead, these reports provide account lists which the user can check to see that no faulty information is in the reports. Canadian government offers free publication which provides a sample credit report and documents to users and explanations of the different codes used in the reports. The publication also gives information and tips on how to improve the rating and how to check for occurrence of identity theft. Generally, Credit reports apply just to a single country. Even while the customer is using same credit card company in different countries, the information won’t be shared. For e.g. if a person living in UK had a very good credit rating and also a very high salary, he/she might not be able to get a mortgage or credit card in United States. This happens due to lack of credit history. An immigrating person has to start from scratch to establish a credit report in a new country. So, it could be difficult for immigrants to get mortgages and credit cards until they have worked for several years with a stable income in the new country. In few countries, some people might have more than one credit report to their name. For e.g. in Canada, people who had applied for credit before obtaining Social Insurance number have two different credit reports (one with the number and one without). Credit reports, especially with positive ratings, are beneficial for the lenders as well as the borrowers. This leads to a better relationship and sense of trust between the borrower as well as the creditor. Free-credit-reports.com can be visited to view more facts regarding identity theft or credit reports.
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