Negative Credit Report

Saturday, November 15, 2008

Credit report has an important bearing on our economic life. If you have a good credit report, you will get credit easily from your bank. But the credit report is not always favors us, sometime there are some negative elements are found which make the lender suspicious about the credit worthiness of the applicant. Therefore it is very much essential for us to know what exactly negative credit report is. The negative credit report reveals that you have not been able to meet your debt obligation; you have failed to pay the monthly installments timely. This negative credit report will push you back; you cannot bargain for lower rate of interest. Negative credit report always doesn’t mean that the lender will instantly deny you credit simply for your negative report, but he will have doubt on your credit worthiness.
The negative credit report doesn’t reveal your failure of debt obligation, it also tells about other information. The credit bureau that compiles the credit report, gathers such information while preparing the report. Information regarding criminal conviction, bankruptcy information, information about law suits etc also mentioned in this report. The credit agencies keep such negative information in most cases for seven years. However, there are some cases it stays there for longer period of time.
The negative credit report always downs the prospect of getting fair deal in the credit market. The information contained in your credit report is not open to all; such report is only provided to those people or organizations, which have legitimate business. The Federal Credit Reporting Act provides that only legitimate companies or organizations like insurance company, credit card Company, the employer with whom you are working or will work or the apartment owner. According to the provision the insurance company and credit consolidation company may send to you unsolicited offer. But you may remove your name from the list for which you have to maintain some formality. There is another  credit law which want to protect the interest of the borrower which says that if an applicant is denied  credit  then he must be informed the reason for which his application is rejected. After getting report from the lender, if you find anything which is not true, you may sue the credit report agency. If you win the case, the credit reporting agency will pay the damage it has made. The debt problem in the USA is really complicated; it has many social and economic implications. Therefore, to protect the interest of the individual different provisions have been made.
Negative credit report (in Canada and USA) is very common and it can happen to any one. We have discussed earlier that negative or adverse credit report affects a borrower badly. If anything unwanted is mentioned in the credit report, we can remove it. If you have to go through minutely the moment you get your credit report. If anything wrong is found you have to underline it. Remember such negative items can be removed.

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