Published: June 16, 2020 | Posted by: Ricky Publico | Personal Finance
You know those online quizzes where you answer a bunch of questions and you end up with a fictional character that will apparently say a lot about you? The adult version of that is a credit report. Your credit report takeaways will say more about you than your social media profile, your career achievements, and even other people’s perceptions combined.
Why? It’s because a credit report contains information that will determine how good you are in “adulting.” And unlike online quizzes, the results are more accurate and the data is more grounded. Also, there are no fun questions to answer, but the result will definitely affect the quality of your life in a huge way.
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Simply put, a credit report is a document containing all your credit history, which includes your past, current, paid, and unpaid debt records. The Credit Information Corporation, among other credit bureaus in the Philippines, collects your personal and/or business accounts, loan accounts, credit card accounts, and installment contracts that will reflect both positive and negative data.
They will then compile it into a report, give you a credit score based on your report, and send it to the financial establishment where you’re applying for a loan, insurance, or credit card. And just like online quizzes, you’ll eventually find out more about yourself through the following credit report takeaways.
Right off the bat, your credit report will immediately tell you how you handle your finances. By simply checking the amount of credit you have, you’ll get an idea of how banks and private lenders will treat your application. While having a bad credit score isn’t the end of the world, strive to get a good score now to increase your chances of loan approval.
A credit report isn’t a requirement in most job openings, but it will show you how disciplined you are, especially with money. For instance, the amount of timely payments you make, the number of credit cards you can balance without maxing out, and the lack of non-payments reflect great qualities of a proper and professional employee. Be proud of these traits!
Even if you’re not applying for anything, it’s good to check on your credit report and see how far you’ve come as an adult. Did your loans and credit card debt weigh you down? Did your lack of debt improve the quality of your life?
Insurance companies can also review your credit report to determine how big of a liability you are. Of course, if you have a terrible credit score, you’re just telling your insurance provider that you don’t have your life together. Why would they bother covering a high-risk individual like you? Consider this before you dismiss the importance of a credit report.
Planning to start a family soon? Maybe consult your credit report first. Because aside from your money-savviness, your credit report reflects your maturity in handling your finances. Why start a family when you can’t even pay off your remaining debts? A credit report can help guide you to improve your way of life. Don’t start your own family on a bad note.
So as early as now, you should be more curious about your credit report takeaways. Knowing how financial institutions will see you can definitely help improve your way of life in more ways than one. Build a good credit history and invest on better loan opportunities as early as now. You’ll definitely need it someday, either for you or your future family.
This article first appeared on The Manila Times.
Ricky is the zaniest Senior Content Writer at Moneymax, with over five years of writing experience in the digital marketing industry. He is a huge fan of pro wrestling, smartphones, and binge-watching. Follow Ricky on LinkedIn.