“A credit rating is an opinion about the financial strength of a company and its ability to pay its debts and the corresponding interest. It is a tool for risk assessment and, as such, it provides investors with a simple and objective indicator of risk. of default to supplement your own credit assessment. ” (Business Finance and Philippine Business Enterprises, Nenita D. Mejorada, 2006)
Some of us are willing to give up the complacency and security of a regular job to start a business. We are willing to invest our money in a business where we can be our own master and employer. We do feasible studies, we build our network and we offer our products through social e-commerce. But going into business means having the acumen to seize opportunities. We must 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 myriad of business opportunities to try. Many of us are willing to get hold of them, but we don’t have enough capital to do so. We can gradually save from our monthly payment, invest our money in assets, or, if we are lucky, we can make use of what our family has. Another option is to reach out to other parties that are willing to invest in our business. But most people choose to borrow for their business capital. These days, banks are more than willing to offer assistance in starting a capital. This makes the credit report an essential source of information for obtaining loan approval from banks.
What’s in a credit report?
The credit report contains your credit history: the types of credit you use, your account payment history, recent credit and loan applications, and the amount of credit you have used. Also included are your basic information, employment history.
The credit bureaus use this data to generate your credit scores so that you can access your financial situation.
Credit report security
We see various credit reports available online. We see advertisements that tempt us to view our credit report online and score with the click of a button. Initially, we are curious about our credit scores 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 are based solely on verifying the legitimacy of a credit reporting agency. It must be valid and legal.
Having a secured credit bureau will provide us with a privacy policy that gives us details on how our information will be used. They guarantee a safe place for our information, which is crucial to protect our data.
Personally Identifiable Information (PII) or Confidential Personal Information (SPI) should be highly appreciated due to the threat of identity theft. It is essential that everyone considers the security of your information 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 a vital role in our financial life. It is essential not only to obtain a solid credit history, but it also qualifies us for a better option to access our line of credit. The knowledge we have about credit management gives us control over our future. Better to be equipped, especially when it comes to our finances. And when it comes to finances, he works hand in hand in planning for our future. Financial management takes us away from the obligations that can prevent us from having financial failures. Securing a credit bureau gives us that financial freedom back.
