Keeping Score – Score cards to track Credit Histories
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Keeping Score – Score cards to track Credit Histories

Keeping Score – Score cards to track Credit Histories

Updated: December 26, 2012

Add to Favorites:
Creditors these days have a new way of ensuring the trustworthiness of their customers. Credit tracking is essentially a way of keeping track of a person's past financial record be it loan requests, payments, bank statements etc. This is believed to show up any unfavorable behavior traits that people might employ while paying back loans. What started as just a novel way of keeping track of customers has fast blossomed into a prerequisite for loan sanctions and other financial deals. The Bad credit history or adverse credit history may just about prevent a bank from sanctioning a loan. The Bad credit history or sub- prime history is computed by credit bureaus and consumer reporting agencies. These agencies put together reports based on details that creditors and money lenders provide. These details are mainly accounts of their relationship with the customer. The credit score: A tracking device The credit score is the essence of the Credit history. The score will tell if a person is a trustworthy customer or otherwise. The credit score is a mathematical algorithm that denoted, in numerical value, the "creditworthiness" of a person. They employ a statistical method to gauge the financial risk of money lending to a particular person. The higher the score, the greater the probability that the person will repay the loan. An interesting feature of the credit score is that the score dips every time a money lender makes an enquiry of that particular score. This is so, as frequent enquires indicate that the person under consideration is in a financial difficulty judging from the number of money lenders he/ she has approached. Dual Histories A person can, however, have more than one credit history. The second Credit history may not add anything substantial to the record provided by the first. For example, people applying for a loan before acquiring a Social Insurance Number (SIN) have two credit histories, one recording their financial dealings before the Social Insurance Number and one recording the financial dealings after acquiring the Social Insurance Number. The credit history itself only applies to one country. Credit Histories are not shared between countries, even if they belong to the same credit card network. A person migrating from one country to the other has to start afresh. There are three main credit bureaus that keep track of the customers' payment histories and other critical financial data. The bureau keeps a record of customer dealings and statements of payments made. These records are made available to non financial companies as well, such as housing Finance companies and credit card agencies. The Credit Information Bureau makes the information available through a credit references. Bureaus also provide references about individuals whereas Credit rating Agencies provid information about bigger players such as companies etc. Financial consultants offer advice on how one can better a bad credit history. For one, timely payments on loans taken help better bad records. Bankruptcies must be avoided at all costs.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading