Introduction
Being a business entity or even an individual, you need money. Money is needed in all aspects of your life and in the case of running a business of your own, you need enough capital to meet your expense requirements. It is nearly impossible for the businesses to rely completely on their own capital equity, they often have to come towards financing to get credit loans for their financial needs. Since every business relies almost 90% on credit transactions, the availability of cash to make future payments is of significant concern. Hence for financial support, businesses have to decide and make proper financing policy to meet their financial and operation needs. Businesses apply for getting credit and for this purpose they need a good credit report score.
History
A good credit report is one that satisfies the creditors by making them clear that your business is strong and operationally efficient enough to adhere to future payment obligations. A good credit report ensures your business to get credit easily and at lower interest rate charged by the creditors, because it assures creditors your status free of any bankruptcy and delayed repayment. Therefore, having a good credit report is of prime focus for any business. They must aware of the items and information to be included on credit report.
Features
The national agency for consumer protection i.e. centralized Trade Commission launched a guidelines in the form of a booklet to help the enteritis to construct a credit report. These guidelines consist of six segments through which one can know the necessary items to be included on credit report. In USA, the law called Fair Credit coverage Act and truthful Credit dealings Act require the companies to fully explain their rights enjoyed under these acts. The aim of these act is to strengthen information privacy , precision and fairness of procedure in the folders of nation’s companies that are reporting the credit.
New amendments have been made and new regulations have to be abided by the business utilizing the credit reports and report to credit coverage companies about their consumers as well. Secondly, items on credit report also include the legal measures for further improving the credit report. Thirdly, it comprises of certain tips on how to make proper debt dealings. Because of complicated procedure, it is the possibility of having in accurate or bad credit information to be presented on your credit report, hence it also include safety measures to remain protected from scams that are related to credit. Identity theft can also be made with the help of such information present on credit report. Lastly, along with these information and details, the credit report ends with providing additional sources of information that might get helpful in future.
Tips and comments
Having a perfect credit reports opens various doors of credit opportunities for your businesses. So all these steps are of major concern for the company to be monitored and evaluated from time to time to ensure proper and timely availability of credit report whenever they are going to avail any credit opportunity.
