A credit history is a record of a borrower's responsible repayment of debts. A credit report is a record of the borrower's credit history from a number of sources, including banks, credit card companies, collection agencies and governments. A borrower's credit score is the result of a mathematical algorithm applied to a credit report and other sources to predict future delinquency.
In many countries, when a customer fills out an application for credit from a bank or a credit card company their information is forwarded to a credit bureau. The credit bureau matches the name, address and other identifying information on the credit applicant with the information retained by the bureau in its files. The gathered records are then used by lenders to determine an individual's credit worthiness; that is, determining an individual's ability and track record of repaying a debt.
The willingness to repay a debt is indicated by how timely payments have been made to other lenders. Lenders like to see consumer debt obligations paid regularly and on time, and therefore focus primarily on missed payments and may not, for example, consider an overpayment as an offset for a missed payment.
Absolute People Screen can undertake credit checks via various credit bureaus. A credit check is highly recommended if a client is hiring a candidate to fill in a position in accounts / finance or filling a senior profile.
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