While in Germany, the primary focus is on the collateralization of the mortgage and "only" the income for the installments has to be proven, the situation is somewhat different in the USA. You can see from this example that these are things of simple life, which are denied you with bad entries in the credit history.
All these companies take a look at the credit history to see the payment morale of the customer. Unlike in Germany, where practically everyone who was not terminated by the Telekom gets a telephone connection without further notice.įurther it goes with cable TV, mobile phone, electricity, gas, water. If you do not meet the requirements for new customers, you can expect a deposit that is not too tight. You will notice this at the latest when you want to register your phone. It is only an excerpt of some common possibilities.Įveryday: Even the simplest things in the USA require a good payment morale. WHY DO YOU NEED A GOOD CREDIT SCORE? There are certainly an infinite number of applications to consult the credit history and I hope you will forgive me if one or the other application is missing in my article. This results from the fact that each credit bureau has its own formula to evaluate the applicant and/or one or more information was not known to all bureaus during the determination. Since each individual credit bureau works individually and independently of the others, three different valuation figures often appear. Because not everyone gets the promised financing of the dream car at the advertised conditions without further ado. Anyone who has ever followed the USA advertising television or radio regarding the financing of cars or other items will always come across the small clause "Qualified Customers only" or a similar clause. However, the banks expect a higher risk with a lower number and will of course let you pay for it. Surely you dont have to be at the top end of the 900 points to get a credit. The more points you have, the more creditworthy you are. WHAT IS A CREDIT SCORE? The credit score is a number that can range from 375 points to 900 points. Social Security Number as an ordinal number Number of requests to the credit bureaus How often and when a payment to the creditor was delayed Deleted credit lines with details of who cancelled the credit Information on current credit lines and the resulting monthly charge employment information, where, how much, what was earned At the same time, this figure is often a basic prerequisite for a particular credit offer. Using a special formula, which each office has developed differently, a number is calculated that allows a comparison with other people. Information is given about how creditworthy the person is. These bureaus meticulously record every "movement" of the client and constantly determine an up-to-date credit score.ĭEFINITION When you look at a persons credit history, you look at their financial history. The main credit bureaus (credit agencies) in the USA are Experian, Equifax and Trans Union. Even insurance companies are increasingly checking whether the applicant belongs to the desired clientele or not. This data is collected by various credit agencies, which are constantly gathering the latest information. Always the data of the applicant is used to ensure that you do not take too much risk. And with credit does not necessarily mean money lending! No matter if it is the car insurance, the telephone connection or the new house. Christian Schimanski, an expert in this field, who our readers can also contact at the e-mail address many years it has been common practice in the USA to obtain data on new customers before granting even the smallest amount of credit. But how do you get a credit history and what is it good for? Even if you do not want to take out a loan, sooner or later you will need a credit history report. In the USA there is no getting around the topic of "credit history".
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