Function of Credit Report and Credit Bureaus

Credit Reports are the financial bio-data of an individual. A credit report proves how well you have managed your finance. They say that a man who can manage his finance well can manage his life well. When a person takes excess credits and is unable to pay them back in time, he gets into debt. A clean credit report is very essential for a person to be eligible for future loans.

Credit Bureaus are private companies that maintain your credit history. They collect credit information reported to them by banks, mortgage companies, departmental stores and other creditors. These information are then compiled into a credit report.

The Credit Report gives you a thorough evaluation on how you have managed your credits in the past. Companies review your credit reports to determine your credit worthiness. With a clean credit report and sufficient income, you can easily qualify for additional credit. But a poor credit history creates a negative impact on your credit report and thus lowers your chances of availing further credit.

When a creditor denies your request for credit based on information in your credit report, the creditor must indicate that and name the bureau that provided the information. As per laws, bureaus are required to share with you all information they have on file about your credit, past and present.

But sometimes even when you are aware of everything you can't help being in debts for some unavoidable situations. In recent times when debt figure has increased a lot, debt consolidation packages are most effective. With debt consolidation you can not only pay back the debts but also avail proper guidance to restore your finance. Your credit history remains unaffected with debt consolidation credit repair packages.