Personal credit report Information
Components of personal credit report
Personal credit report should include a number of components. These components should have to be in proper order. Before going into the depth of personal credit report, let first look at what is credit report. It is a report which contains information related to a credit history of a person. It also includes credit accounts, identification information, bank ruptcies, late payments, loans and other recent inquiries. It can be obtained from prospective lender with the permission of borrower. It helps in determining her or his credit worthiness.
Following are the components of credit report:
- Subject’s Name, Address, History
- Bankers of subject
- Legal status, ownership and Date of Establishment
- Activity’s description
- Standing of the subject in the industry
- Payment records and commercial morality
- Inventory
- Financial condition
- Public sector entities
- Recommendations and opinions
Name of the business and address of the business should be verified when registered along with dates and numbers of the registration. Previous address and name should have to be indicated, if the sole proprietor uses the unregistered trade name. Any other recent changes should also be indicated in the report. History of the business, experience, reputation and education and quality of management are also important for personal credit report. It is also useful if the information related to name of the bank, its address, its contacts, fax number and telephone number are available. Length of relationship, size of unsecured and secured lines of credit, opinion of the bank, and type of account can also be added in the report. A subject can be engaged in a number of activities such as distributing, manufacturing, wholesaling, etc. so it is advisable to add information related to all activities in which they are engaged. It is important to add information related to the standing of subject in the industry. It should also include number of clients and number of employees working in the industry.
Opinion related to payment method and commercial morality an also be added in the report as it can be a proved as an evidence and can support on the basis of collection experience and knowledge. A valuation and description of the inventory should be given in report and it should also include method of valuation in the report. Financial condition of the subject is an essential element in the report for appraising the credit worthiness. Current and past records related to liabilities, turnover, expenses, profitability, assets and equity of the subject should also include in the report. If it is possible then express an opinion on the credit worthiness of the subject. The personal credit report should include sufficient figures and facts so that insurer can make own assessment. Opinion should have to be supported by reasonable argument and the basis of the opinion should also be explained.