For your business to qualify for a loan, borrowers usually require to see the firm’s company credit reports Vietnam. In this article, we will be discussing a business credit report.
So what is a credit bureau score?
This is an expression in numerical form that is achieved from a level of analysis of a borrower’s credit file. This is done to ascertain the credit-worthiness of the borrower. The system will then calculate and come up with a comprehensive score about that borrower’s creditworthiness. From the score, financial institutions are able to assess the level of risk of giving that borrower a loan in relation to the average level of the market.
Credit scores are used by banks and other credit institutions to evaluate the level of risk they are exposed to by advancing finances to individuals and businesses and also to deal with losses arising from bad debt. Apart from that, the score is used to determine if someone qualifies for a loan, the interest rate to charge them, and their credit limits. Also, information on which customer is likely to bring in the most revenue is determined by this score.
What is a credit report?
Detailed information on your credit history such as recent inquiries, bankruptcies and late payments, credit accounts and loans, and identifying information is contained in a credit report.
The credit file collects data relating to your loan repayment performance. Lenders may use this file to assess for any new loans that you have applied for, or use it to review your current loan.
When will a lender conduct a credit bureau check on you?
Below are some of the common circumstances where lenders will conduct credit report inquiries:
- Before granting a credit limit increase
- Before granting an over draft, credit card, or a new credit
- When you delay on making your payment
- When they receive reports that makes them doubt your creditworthiness
Why do you need a credit report?
When applying for a loan, lenders need to know that you have the ability to service in order to approve the loan. Credit institutions like banks and financial institutions will only grant you a loan after knowing that you are credit-worthy. Some of the common credit applications that borrowers make include:
- Business loan
- Credit card
- Study loan
- Housing loan
- Car loan
So, if you were about to request for your company credit reports Vietnam, these are some of the things that you need to know.