A credit report is a personal financial profile which details the current and past history of all outstanding credit resources at a person’s disposal. Every time a person agrees to enter into a credit agreement, the notations of their performance in honoring the terms of said contract become a permanent part of their credit profile. Each account will be listed, in terms of type of credit line, credit limit, payment history and other rating factors.
Credit information is reported to any or all of three main institutions which are charged with maintaining a huge database of all personal transactions over the course of many years. These institutions include Experian, Equifax and TransUnion.
This essay examines the value of credit reports and explains how professional investigators can be very useful in both uncovering and resolving credit-related problems.
What is a Credit Report
The range of credit scores goes from 300 on the low end to 850 on the extreme high side. Reporting of credit history over time will paint a very vivid picture of a person’s spending habits, timeliness with payments and most importantly, future credit worthiness.
Credit rating is shown as a score , which is determined by averaging the individual profiles reported by the big 3 credit agencies. This credit score can make or break a person’s financial aspirations in a great number of ways.
Basically, good credit will open economic opportunities in life, while poor credit will have doors slamming shut, possibly before the poorly-rated individual even attempts to proverbially knock. Many institutions look at a credit score as a personal rating which reflects the overall quality of the individual, not just their financial responsibility.
Credit Report Uses
Credit profile can be checked for many reasons. Most third party entities can not usually investigate credit history without consent, but there are even ways around that stipulation. Hiring a private investigator is a great way to research a personal or business credit profile, without the subject of the inquiry even knowing that they are under investigation. Here are some of the common reasons why a credit score will be subject to scrutiny:
When applying for new credit or increased credit lines, a full report will usually be generated to assess risk.
When applying for a new job, or possibly when applying for some government applications, credit might be one of many personal criteria used as determining factors.
A person’s credit history might play a role when being sued or investigated for any financial consideration, including a civil matter which may result in a financial judgment.
When purchasing or leasing almost any type of real estate, or when applying for credit for a major purchase, such as a car, credit worthiness will be evaluated prior to acceptance or denial of a loan.
Credit Report Investigations
Building good credit can take years, or even an entire lifetime, while destroying it can take only a moment and some poor judgment. Always do everything possible to protect your credit, by utilizing common sense and financial responsibility in your personal and business transactions.
Additionally, be wary of credit card fraud and other instances of theft which may affect your credit profile. These blemishes may take years to be fully cleansed from your credit file, so it is far better to catch them before they occur.
The best way to protect your credit is to minimize unnecessary inquiries and constantly monitor your credit file from all 3 reporting agencies. Meanwhile, utilize credit responsibly and make payments on time. Only through these means can you truly be 100% sure that you are considered a good risk , no matter what type of financing you are applying for.
If you do suffer a correctable credit-related problem on your personal history, hiring a private investigator can help to get the matter resolved in the shortest time possible. For more information, contact a private eye who specializes in background checks, financial investigations or credit repair services.