“A credit rating is an opinion about a company’s financial soundness and its ability to repay its debt and the corresponding interest rate. It is a risk assessment tool and as such it provides investors with a simple and objective indicator of default risk to supplement their own credit rating. “(Business Finance and Philippine Business Firms, Nenita D. Mejorada, 2006)
Some of us are willing to give up the complacency and security of a regular job to do business. We are willing to invest our money in a company where we can be our own master and employer. We conduct feasible studies, build our network and offer our products through social e-commerce. But getting into business means having the edge to take advantage of opportunities. We should know our target market, the goods and services our market needs, the growth and stability of our business and the financial resources we have.
There are a lot of business opportunities to try out. Many of us are willing to seize them, but we do not have enough capital to do so. We may gradually save from our monthly salary, invest our money on assets, or if we are lucky, we can use what our family has. Another option is to approach other parties who are willing to invest in our business. But most people choose to get loans for their business capital instead. These days, banks are more than willing to offer help to start a capital. This makes the credit report an important source of information for obtaining loan approval from banks.
What’s in a Credit Report?
Credit Report contains your credit history – the types of credit you use, your account payment history, recent credit and loan applications, and how much credit you have used. Your basic information, employment history is also included.
This data is used by credit bureaus to generate your credit scores, so you may be able to access your financial situation.
Security of a credit report
We see a number of credit reports available online. We see advertisements that entice us to view our online credit report and score with the click of a button. Initially, we are curious about our credit performance and how we can improve our assets.
But finding a reputable credit report is also an important thing to consider. Credit report information and its security depend only on verifying a credit bureau’s legitimacy. It must be valid and legal.
Personally Identifiable Information (PII) or Sensitive Personal Information (SPI) must be widely considered due to the threat of stealing identity. It is important for everyone to take into account the security of their information in order to avoid future problems. Source: CIBI Information, Inc., a credit bureau in the Philippines (http://www.cibi.com.ph)
Good credit for financial freedom
Managing our credit plays an important role in our financial lives. Not only is it important to have a strong credit history, but it also qualifies us to have a better opportunity to access our credit line. Our knowledge of credit management gives us control over our future. It is better to be equipped, especially when it comes to our economy. And when it comes to economics, it works hand in hand in planning our future. Financial management pulls us away from obligations that can prevent us from achieving financial failures. Securing a credit bureau gives us financial freedom back.