Credit Report and Score: What Financial Factors Affect a Credit Rating?

A credit report can be defined as an official record of the debts that are outstanding in a person's life. Credit reports are more frequently used in many Western countries. The credit report is an essential financial tool for attaining loans in the United States. Credit reports are extremely useful documents that companies (mostly banks) needs to have in order to make crucial decisions about the responsibility of a potential client. Be it a small-scale company or an IT giant, credit reports are essential to keep an account of the credits, loans and debts. For an individual, a credit report would contain information about their identity (in example, date of birth, social security number, etc), public records, dates pertaining to their employment and details of borrowings. Some factors which would affect one's credit report, bill paying habits (punctuality), loans and credits, length of credit history are some of these factors.