What is a Credit Health Report?

A credit health report or credit report is a comprehensive financial document that reflects your creditworthiness. It helps your lenders to assess the risk associated with lending the money. The key components of a credit health report include:

Credit History: This section mentions your credit accounts, including credit cards, loans, mortgages, and their payment history. It talks about timely or delayed payments and defaults.

Credit Score: Your credit score condenses all the relevant information in the report into a three-digit number. Higher scores indicate lower risk and make it easier to access credit at favourable terms.

Credit Inquiries: This section lists the inquiries made by lenders or creditors while assessing your credit applications. Multiple inquiries within a short period can negatively impact your credit score.

Public Records: Any legal actions related to finances, such as bankruptcies, tax liens, or judgments, are recorded in this section.

Personal Information: It specifies basic personal details like name, address, employment history etc.

You must monitor your credit health report as it can influence access to credit, define loan terms, and influence job opportunities. Additionally, it helps you identify errors or fraudulent activity that may impact your creditworthiness.