Getting a good financial status report leads to being able to buy a home or a car at attractive interest rates as well as getting a bank loan without any hassles. To establish a good rating the best thing to do would be to have an overall understanding of a finance score. There are certain things that an individual needs to do in order to get a good score. Paying bills on time and in full is one of the main criteria to go up the scale. A credit score is usually broken into the following components which are payment history, debt usage, credit age, account mix and frequency of application of credit. People can with the help of 3 bureau credit reports review their finance history for any potential inconsistencies.
Understanding the concept of credit is mandatory
To start with an individual must learn to work with limits on a credit card. Credit cards have a way of sucking in people’s will power as payments do not need to be made immediately. It is always advisable to pay all dues on a credit card in full rather than opting for the minimum monthly payment. Paying only the minimum due would mean paying with interest as well as credit score diminishing. This would come out as a potential inconsistency when 3 bureau credit reports are being viewed. Being aware of interest rates is a good thing for anyone who is borrowing money.
Financial History Reports are made by national bureaus
Financial History reports for landlords can be obtained by the reports made by the three national credit reporting bureaus which are known as Experian, Equifax and Transunion. Each of these bodies maintains one report on each individual. The information in each report may differ as creditors do not have to report account information to all three bodies. Judging creditworthiness is done based on a financial history report which provides a detailed history of an individual’s current and past financial transactions. The report would include loan amounts, payment history, dates on which accounts were opened and defaults if any.
Landlords must be approved before running a credit check on tenants
In order to give credit reports for landlords, companies insist that the landlord goes through a vigorous verification which would include the submission of proof of rental property, identification proof and address proof. This kind of approval can take anywhere between two to ten days or can happen in a matter of seconds.
Some landlords charge their tenants for the report and some are cautious and do not with the fear of losing good tenants. There are some landlords who start moving on this process after the prospective tenant leaves a deposit on the property.