Since the introduction of the national credit act, bankers have become extremely tough on loan applicants and customers seeking several services. A mandatory credit check report that outlines the summary of financial status is being requested by major banks across the nation for fulfilling various formalities. Hiring a personal auditor or agency is the best way to ensure that the report gets done in a professional way. Credit score, personal ratings and defaults that occurred during a particular financial year will be outlined in a credit report.
There are major challenges that arise during a typical credit check report making. There could be numerous things that are listed falsely. Credit agencies would help in identifying these entities and making adjustments by settling them with the respective banks. The following are the common factors that usually lead to discrepancy in credit scores of individuals.
Identity theft:
Identity theft leads to illegal access to personal accounts which has a negative impact on the personal credit score. Individuals who encounter such acts must report to the credit agency in order to get the right kind of adjustments. Information provided by the banks regarding these issues would help the credit check report in a great way.
Past payments:
Late payments or overdrafts will reflect on the credit score. Default on more than two occasions would lead to negative credit rating on a whole. Credit check agencies will examine the causes and financial status and come up with suggestions for improvement. Bank agents recommend to pay the bills or dues on time in order to project the best credit report.
Timely credit reports:
Maintaining credit reports on a regular basis will help in understanding the spending pattern in a great way. Credit check done by agencies will help in easy understanding. Many agencies follow a 3 in 1 approach that encompasses of credit status, judgments and defaults of the individual. Credit reports will therefore increase the chances of availing specific financial services.