As per dictionary credit refers to an act or task of gratitude
. Credit runs through our lives in various forms. It is the creditworthiness of an individual which defines the market value of the individual. Credit reports are the true representatives of one's market worthiness in financial terms. These credit reports provide comprehensive analysis of every financially viable individual and organization in defined measurable terms. This defined and classified information is further used by lenders, banks, companies and institutions which assess the credit potential of the customer against the level of risk associated with the amount of credit demanded.
There are specific credit firms in Australia which accumulate all the information pertaining to the market worthiness of an individual or firm. And customers are free to write to such firms demanding a free copy of their credit reports as per the Privacy Act. The Privacy Act states that the consumers can expect a reply to their writing within a period of 10 days. These agencies are further governed by the Federal Government which has laid down specific rules and regulations for the working of such agencies. Some of Australia's largest credit reporting agencies includes Veda Advantage and Dun, Bradstreet and Baycorp Advantage.
Credit reports are a valuable source of information which includes details like as name, address, date-of-birth; employment, sex, cross reference name and drivers license details which further assist the lenders in deciding the probable footing of the customers. The credit reporting agencies hold data for a maximum period of five years where any information pertaining to any kind of credit enquiry or application was made or not.
The lending firms look for specific information in the credit reports which may range from current credit accounts to any kind of overdue accounts and defaults to any kind of bankruptcy information of the customer.
It is important to understand that having a good credit report goes a long way in offering quick processing of applications to lower interest rates. Credit reports offered considerable information which assists in improving credit standings.