A credit reporting agency is responsible that documents and maintains the credit history of businesses and individuals. They receive the data from various sources such as lenders and the data is received by them in the form of a report which also includes the credit score.

The right credit reporting agencies play a vital role in the credit industry as they are responsible for sourcing the information of credits, determine the credit score and partner with other issuers of credit for the purpose of marketing. These agencies receive a variety of information that is offered to the customers as services. If broadly categorized, these agencies belong to two different customer bases. One for individuals and the other for businesses, and one of the largest credit reporting agencies in the world include the Dn and Bradstreet, Equifax and the Transunion.

What all do they work for?

These credit agencies exist because they have the source of immense data that can be included in the credit report. The lenders also collaborate with the credit agencies that get reports customized for some specific information that can then influence a decision for credit. These agencies also partner with a lot of companies to get access to the credit histories of their customer base.  They not only receive the basic credit information, but they also have access to rent bills, cell phone bills and water and electricity statements. The latest credit reporting agencies are working to create a reasonable score report for people who do not have access to banks and loans, and who do not have sufficient methods to determine transactions that dictate their credit history.

More about credit reports

Every credit report follows a standard template that contains the trade line for each borrower. The trade lines are useful for determining the essential information about the amount of credit issues and the payment done and pending. Payments which are not cleared are reported to these agencies if two or more continual payments are missed. Thus, such payments also begin with 60 days past the report, and the 90 days, 120 days and it goes on.

Trade lines can be reported from a variety of information such as credit card accounts, utility bills, tax paying bills and cell phone bills. Some of the adverse credit scenarios stay on the bill for seven years. Any case of bankruptcy will remain on the report for a minimum of 10 years. The credit reporting agencies are governed primarily by the FCRA and are regulated strictly by the Federal Trade Commission.

So, if you want to maintain a good credit score, make sure to repay the debt collectors Australia on time and clear any recurring payments big or small as soon as possible.

There are hundreds of lending agencies and institutions near your locality (including the various banks and financial institutions). Whenever you need to get a loan all you have to do is drop by these places and apply and you will get your money. No, that’s not how it happens. It’s not that easy. Sometimes the process itself is so long and delayed that the approval for the loan comes after the intended purpose of requesting a loan has expired. This means that you have no use of it.

Also in many institutions like banks the procedure is too stringent and the bank will go through all your financial documents and guarantors, pay slips and assets before they finally settle to approve your loan application. Sometimes the procedure itself puts you off of actually wanting to get a loan to do anything productive.

But getting a loan is now not as bad as it used to be. The financial institutions that has sprung up during the recent decade has made it easy for normal people to apply for a loan and get it. It has become easy, convenient and an efficient process without a lot of hassle involved with other factors like guarantors etc. There are various types of loan schemes available for almost all of our financial needs and caters to a wide range of people. For an example commercial auto loans are available where you can apply to buy yourself a good vehicle.

There are other loan types like housing loans and even jet ski loans which will finance you to buy your own jet ski. So all you have to do is go through the offers and packages and select the best deal for you. You must be very cautious in selecting a loan because you must select a loan scheme that is best suited to balance your needs and your budget. Even though the loans could be easily applied for and obtained the payment plan can be a bit tricky and you might get in to a tight spot if you are unable to pay the monthly installment.

You must make sure that you read the whole contract with its terms and conditions and make an informed decision. It’s always good to think more than twice about obtaining a loan and if you have no expertise in this area you can go to a friend or an experienced person in this area and ask about the pros and cons of each loan scheme or plan. Taking a loan is not something that you should take lightly. Always think well and make calculated decisions. Never borrow more than you require and make sure that you pay the installments on time.