2.Credit Reports – "The Secret paper behind the Scores"

A credit report or sometimes called the credit history is the analyses of the client, identifying all positive or negative points. Each client is different, so one credit report should be done for each customer and include at least all the five components refered in the first post.

All large, medium or small entities that provide credit need to analyze their customers. Would you sell cash, services or products without knowing who is on the other side?

NO

This analyses are going to provide suficient information to score the client and after define the conditions, if any.Where comes the information from?If you were in a difficult financial situation and asking for credit, would you provide it? Probably no!

Most credit reports gather information provided by credit bureaus, specific and official credit reliable sources.  There are 3 major bureaus:

• ·         Equifax
• ·         TransUnion
• ·         Experian

Can WE do it as well? Yes we can.

A great help to improve your score is to see the same picture that they are seeing. Ask once a year your personal report to one of the 3 major bureaus. It is worth the few pounds!!

At the end of the report you will be graded as the following example, ask the report and try to score your own "credit reputation".

Curious Fact: Do you think banks or financial institutions buy to the 3 bureaus for information and then mixed it in one report, most of the cases no. Because it would be too expensive, so in most of the cases we can say their analyses might be incomplete.