Apply for Credit: Credit Report and Credit Score

snerfuStarred Page By snerfu, 19th Jun 2014 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Credit Cards

All information you provide in your application for credit is kept securely. This information is used by lenders to assess the risk factor. Credit score helps them to arrive at the correct value of risk in giving you money.

Begin with credit score

When you apply for credit with any organization they will work out the credit score for the item you want. This organization uses your credit report and application form information to arrive at the credit rating. You can understand use of credit score as an assessment of the risk factor as perceived by lender, in offering credit to you. However, this credit score should not have basis on religion, gender, political beliefs, race, criminal record or sexuality.

Keeping credit information private

Normally no one can read your credit information. Anyone can make searches for information only after obtaining your permission. In normal situations when you apply for credit, you have to give this permission. In the application form, you will find a list of items for which they want permission. If any of those are not to you liking, then you must not give permission.

Ask for your credit score

Every organization has its own method of arriving at its credit score. Yet, when you apply for credit, they have to illustrate their method of assigning the credit score. If they refuse your application, they have to show how their system of scoring determined the outcome. They also have to tell you whether any information present on your credit report influenced this decision.

Chances for organizations to refuse credit

Each organization has its own policy for assessing the suitability of a person for credit. Each way has unique way of deciding whether they have to give credit or not. They will also read your credit report and make an assessment from that. For example, if you have applied for credit in too many places, they might decide that you are asking credit over the limit. Chances exist for them to decide that you are a cheat. For this reason, always ask for details when someone refuses you credit.

Reasons for refusal of credit

A lender can turn you down when you apply for credit for a number of reasons. Invariably, this decision occurs due to information present in either your application or your credit report. When refusing credit, shops that it the lending agency, should specify their basis as being:
a) Policy of lender
b) Information provided by you separate from your application
c) As a customer information you provided
d) Information they have obtained from your credit report

Do they blacklist people?

There is no blacklist there is only a list of people with their addresses and other pertinent information. This information is only that which is publicly available and as such provided by the customer voluntarily. If you make timely payments and do not have any other problems that might disqualify you, then you are definite to get credit from most lenders.

Information sharing scheme of lenders

Lenders have strict set of parameters within which they have to act. Office of the Commissioner of Information monitors lenders and help in maintaining privacy and information. Information sharing among lenders is subject to the amount that they are willing to share. Any information made available publicly such as electoral roll or court judgments will take place only with your permission.

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Credit Report, Credit Score, Information, Lender, Permission

Meet the author

author avatar snerfu
Bachelor, Christian, 53, settled in Madurai, India, like to watch football and tennis on TV. I also have occasional walks but try to read the Bible daily. For amusement, I read the newspaper.

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author avatar Bill Harbin Jr
20th Jun 2014 (#)

Very informative article, and I see what why this was selected as a star page.

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author avatar snerfu
20th Jun 2014 (#)

Thanks Mr Harbin, I like to be thorough when I write. Thanks for the compliment and for the look up.

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author avatar Phyl Campbell
24th Jun 2014 (#)

You covered the facts well and had good brevity. Well done!

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