My friend Paul told me that in the United States, a credit report is very important. Things like cars and houses are so expensive there that it is almost impossible to buy anything with cash, unless he is Bill Gates or Donald Trump. He should know, having lived in the United States for over 15 years!
I asked him as I was curious about the Credit Report since there isn't any such thing in Malaysia, well, at least not that I know of.
Paul said that unlike in Malaysia where there are quite a number of people buying used or even new cars with cash, it is not the case in America. Most of the cars and homes are paid for on installment plans, so financial organizations and any company that is considering giving us a loan will need to look at our credit report to determine our credit worthiness. Can we repay that loan and in what quantum and how long do we need? These are some of the questions that can be addressed with a good credit report.
I do not know how accurate a credit report is. I read that one could score higher in the credit test if he knows how. And I am sure that having too many credit cards can harm our credit worthiness too!
Also, there are companies that give out free credit report. It can be done online too. However, some people prefer to pay for them. Well, I am sure no matter if we paid for it or if it is free makes no difference to our credit worthiness!
In any case, I am told that sometimes there will be error on the report and if this happens, we have to alert the company who made the report as soon as possible to have it corrected.
I asked him as I was curious about the Credit Report since there isn't any such thing in Malaysia, well, at least not that I know of.
Paul said that unlike in Malaysia where there are quite a number of people buying used or even new cars with cash, it is not the case in America. Most of the cars and homes are paid for on installment plans, so financial organizations and any company that is considering giving us a loan will need to look at our credit report to determine our credit worthiness. Can we repay that loan and in what quantum and how long do we need? These are some of the questions that can be addressed with a good credit report.
I do not know how accurate a credit report is. I read that one could score higher in the credit test if he knows how. And I am sure that having too many credit cards can harm our credit worthiness too!
Also, there are companies that give out free credit report. It can be done online too. However, some people prefer to pay for them. Well, I am sure no matter if we paid for it or if it is free makes no difference to our credit worthiness!
In any case, I am told that sometimes there will be error on the report and if this happens, we have to alert the company who made the report as soon as possible to have it corrected.
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