Credit reporting companies offer a wide variety of information but in the end, they offer you a credit record and an evaluation of your overall credit scenario. Credit reporting companies are companies that offer individuals as well as businesses information pertaining to an individual's credit file. You can also get the best credit & debt counselling in Toronto.
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Credit files are not public records however in some cases, a company such as an auto dealership can pull a report for financing purposes. Car dealerships as well as loan companies for mortgages can pull a credit report to see if a person is creditworthy. Most companies will do this and are standard practice in the United States and abroad.
In the end, they offer information. The information is not public record but is available to certain individuals and businesses. This information is used for the purpose of finding out how a person has handled finances.
It uses a numerical score to figure out whether a person is capable of either paying for an item they intend to purchase, the likelihood of default, and the overall reliability of the individual.
Credit reporting companies will also offer an individual a break down of why their score is the way it is. Late payments may cause the score to go down and a credit reporting agency will have this listed as well as the breakdown of late payments, missed payments, etc.
Maintaining a good credit score is important especially in a down economy. Although many people have prospered through this recent recession, the majority of individuals have suffered financial issues.
Credit scores have been brought down as a result and bankruptcy filings are on the rise. Although bankruptcy is an option, debt consolidation appears to be a more favorable solution for many.