So, you’ve come to the bank with the intent to obtain a loan, maybe, not the first time, and it is clear that initially you study the terms of loan agreement. You are primarily interested in the loan interest and repayment terms. However, you notice that the text of the treaty has such a line: the bank has the right, and the borrower agrees to transfer information about his credit report to the credit bureau. The bank has right to receive the credit report during the entire period of the contract.
Of course, you have a question: What is the credit report and what is the credit bureau, which transmits information about your credit report?
Credit report- is the collection of information about the legal or physical person, which includes information about the implementation of commitments under the loan agreements.
Credit bureau – is a legal person, sole activity of which is the collection, storage and use of information – credit report.
One of the main problems of relationships between banks and borrowers is the lack of full reliable information about a borrower.
Each bank has special and costly services, which task is to collect and verify information about the borrower, his doubtful conditions, and the presence of other commitments, how he repays other debts, etc.
On the other hand, a borrower with a good credit report cannot convince the bank to take into account this report, when determining the bank interest on the loan because the bank requires an objective, not subjective, evaluation.
World experience proves that there is a very effective and proven way to develop a new approach to the relationship between lender and borrower through the establishment and operation of credit bureaus.
Bureau raises the level of bank’s information about potential borrowers and gives an opportunity of more accurate prediction of repayment of loans. Bureau allows reducing the fee for the search of information that the banks charge from their customers.
Bureau creates a kind of disciplining mechanism for borrowers. Everyone knows that in case of default on obligations his reputation in the eyes of potential creditors will fall. This mechanism also increases the incentive of the borrower to return the loan, reducing the risk of misconduct.
Can you remember those good times when practically anybody could take a loan if one required cash? And just imagine the state of those who must bear that burden nowadays when the world economy is facing tough times. And for those people having loans the matter of credit report monitoring is as urgent now as never before. It is not only about loan control, this also allows to save money, time, and nerves and be quick in solving loan related problems. Those who are looking for a spot where to find out about credit reports, are invited to check out this credit monitoring site – there is much information about credit monitoring and how to order the service.
In addition we shouldn’t forget about possibilities provided to us by digital technologies. The online network gives a really unique chance to learn what we require or to obtain anything at the best price on the market.credit monitoring, credit report, Loan