Lecture Review Paper/Res431

Lecture Review Paper

RES/341

May 23, 2010

Prof. Christina Waddell

Lecture Review Paper

In today’s world, a credit report can affect an individual positively or negatively at a personal and professional level. Basically, a credit report is a summary of all the credit records on various type of credit account that an individual has been given for the last seven years. This type of report relates to the quantification of various factors such as the individual credit history, the current balances of credit lines or loans, defaults, the length of time that the credit loans were granting for and court judgments. These reports are generated and provided by various credit references agencies to anyone who needs to check an individual credit record to grand him or her credit loan, car insurance coverage, or just a plain background check for a job application. These credit agencies also provide a calculated credit score based on the information in the individual’s credit report. Lenders prefer to use the credit scores rather than credit reports because the scores reduce extensive, detailed information about person’s financial history to a single number. The lenders will use this single number to define the level of the credit risk the individual pose and the interest rate they will offer him or her if he or she agree to lend the money. A credit report and a credit score provides the individual’s creditworthiness to any entity or person who request credit information. To prepare this lecture review paper I will conduct research by using several secondary data resources to aid in the subject matter.

How a credit report can affect a person.

The website livingstrong.com gave a concise illustration on how a credit report can affect a person. An advantage to any individual would be to be compensated for handling his or her budget and finances responsibly. These compensations or rewards are: qualification for better credit card offers such as lower interest...