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What is your Credit History?
This is a record of how you’ve repaid your past debts,
and a clear picture of your present credit responsibilities.
Credit reporting agencies or credit bureaus collect detailed
information on how you sue credit and sell this information
to banks, retailers or credit card companies.
What does it mean to lenders?
The way you managed your money in the past is a good indicator
of how you will manage it in the future. A clean credit record
provides a lender with confidence that they can trust you
and your business. On the other hand, if you have been bankrupt
in the past it will be extremely difficult to find any form
of lending from a bank; you may have to consider borrowing
from friends, family or provide hard security. Some asset
based financing institutions do not place a high value on
personal credit.
How do I ensure I keep a clean credit bureau?
Pay all debts on time, even if it is the minimum monthly
payment. To establish a personal credit history you may consider
applying for a department store.
How can I fix a credit problem?
Analyze the problem. It may be that you did not realize how
important it was to go to the bank each month to make a payment.
The problem may be more serious and you need to assess your
debt level.
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