Credit: A Manifestation of Your Financial Status
Credit is a financial term indicating 'giving away' of a loan or creation of debt. The term credit is used in business while accepting delayed payment for goods sold to a party. Every business is

A credit report is a documentation that essentially contains important financial information about the organization or the proprietor. The report contains statements or facts about place of residency, identity proof, office address, bill payment, due-dates, public record information etc. Name, address, age, nationality, marital status, date of birth, family members and other information is also entered in the credit report. Information regarding income, employment, duration of job or business is also required to make credit report. A credit history section consists of all the credit experiences with credit givers of the individual. However a credit report usually does not carry information on medical fitness or specific purchases or any such related thing. There are special credit report agencies that compile all the information and make a credit report for a business that can be used for various purposes such as insurance, employment, law etc.

A credit score is nothing but analysis of a person's credit reports that represent the creditworthiness of the person. The credit score is expressed numerically. The score indicates the possibility of the repayment of debts of the person. Banks, financial institutions, credit card companies etc all typically use a credit score to evaluate the financial status of the person and the risk involved in lending loan to the individual. Many of the lenders use credit score so that they can decide on the interest rate and the credit limits too.
About the Author/Author Bio
Debtips is a resourceful channel to make you finance literate and helps you in managing your personal finances. You will get in-depth information about Debt Consolidation, Credit, Bankruptcy and Mortgage. Go ahead and make yourself capable enough to manage your personal finances.
By Expert Author: James Arther
Article Source: http://www.articlesphere.com
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