Monday, June 13 2005 17:28 Hrs (IST) - World Time -

A Credit report is a record of how an individual uses his credit. It is generated based on a credit payment history of a customer. It is always important on the part of the customer to have a good idea about his Credit report. It is also vital to ensure that his credit history is accurate.

A Credit card records how a person uses credit and how much of it is available. It keeps record of a person's late payments. Whether a lender is evaluating your loan request or a card company is considering whether to give you a credit card, you can count on an evaluation of your report to influence its decision.

If we mismanage our credit, we get a bad credit report. The bad report information remains for years and may affect the chance of getting additional credit. Sometimes, reports omit steps that borrowers have taken to improve their credit, or certain errors. So it is a good idea to know what is included in your credit history before applying for credit or a loan.

Creditors and lenders use a person's credit history to determine if there is a credit risk involved in deal with him. The most important thing person can do to avoid this risk is to pay his bills on time.

Part II - Information included in Credit reports