What a Creditworthiness Report Includes

As a consumer, being knowledgeable about what a creditworthiness report includes gives you the upper hand when applying for credit.

A creditworthiness report is based on an assessment of a customer’s credit behaviour. Credit bureaus collate reports, used to assess the creditworthiness of companies or individuals.

Credit analysis is used by credit providers to assess risk levels before granting finance.

Barbara is doing research into ways of maximising on her access to credit. Part of this means finding out what makes one creditworthy.

Within this analysis process, reports are compiled by credit analysts, which include:

Barbara’s credit history comes into play. If she pays her creditors on time and in full, she is regarded as more creditworthy.

Credit scores are used to quantify risk levels. Credit reports are quite extensive, so scores offer a snapshot of the level of risk a consumer has. Barbara should aim to have a score within the 750+ region. This way, she has an excellent credit score and is highly eligible for finance.

Capacity

Assessing Barbara’s capacity means examining her ability to pay her debts. This report provides insight into the financial means she has to actually afford repayments of debt.

Capital

Barbara needs to transparent about the assets she has that can be used as collateral.

Character

The promptness in paying existing bills is a measure of a borrower’s character. It bodes well.

The ideal creditworthiness report includes:

• Payments that have not been missed
• Not owing too much credit
• Accounts opened for a long time (more than six years)
• Having an ideal mix of credit types

Barbara should work towards achieving a report that is worthy of her being awarded the lowest interest rates along with higher loan amounts.