How a Lender Checks Your Credit Report
Your credit profile is crucial for any lender when you apply for a loan. It is like a tool for lenders, who refer to it to know about your credit history. A credit report is maintained by various credit bureaus. It holds all the important data about your debts and the way you are managing them. The lender will like to get his money back and that too on time. If your credit report lacks credibility, the lender will reject your loan application. Here is how a lender checks the credit report to know your credit worthiness. • Other than your basic information like name and date of birth, the lender checks whether you are on the electoral register. • Late payments on credits will leave a negative mark on your credit report. No lender likes to lend money to irresponsible borrowers, who fail to make the repayments on agreed terms. You will be seen as a defaulter. • If you are paying just the minimum and carrying the balance most of the time, the lender will not like it. You