A credit report consists of the financial commitments made in the past. This report is used by lenders to verify the repayment history and the possibility of payment of future transactions. The credit score is a three digit number and this number decides if a person is eligible to borrow. Nowadays, a good credit is required not only for getting a bank loan approved or obtaining a credit card but also for various other services. Mortgage lenders also check the credit score to find out the repayment chances. Credit scores are checked by insurance companies, employers, landlords, while purchasing a car, while starting a new business, utility services like electricity, telephone, mobile phone etc. Credit scores are checked to find out repayment history as this could affect the chances of lending or borrowing. It is very important to have a good credit score to avail financial borrowing. Many factors are taken into consideration while ascertaining a credit score.
The most important is payment history, previous borrowings; the types of credit used previously, current credit applications and the duration of credit. The credit report consists of all the information such as any deferred payments, delayed payments and current payments. It is important to have a good credit score and maintaining it. The best was to maintain the same is by paying bills on time, which can be done by setting up automatic payments. As a good rating is required for mortgages, loans and credit cards similarly having a good rating for purchasing products and availing utility services. Even a bad credit mobile phone could affect getting a mobile phone, as mobile network stores conduct a credit check for approving applications. Though there are a couple of online stores accept applications with bad credit mobile phone score, it is always advisable to maintain a credit score the enjoy benefits and facilities.