This allows an institution to make an informed decision on whether to do business with you. If you have perhaps ever failed to repay a debt within the agreed terms, then this may result in a negative credit listing against your name, and organisations like banks may be reluctant to assist you with a loan.
This is not the only purpose behind a credit report, however. Two of the most important factors shown on a credit report are judgements and defaults. A judgment is something that is actioned by the court. If you fail to meet your agreed-upon account payments as well as fail to respond to correspondence from the relevant provider, then the court will get involved to issue a formal instruction that you pay the outstanding balance. A judgment remains on your credit report for five years.
A default, on the other hand, is a notice that will more likely come from the credit provider itself, to let you know that you are behind on your repayments. A default remains on the credit profile for three years if it relates to legal action or write-offs.
These two factors can be enormously helpful to forensic investigators; Moore Forensic Services is one such company that makes use of this facility. Should an authoritative agency engage the services of Moore Forensics to compile a due diligence on an entity tendering for a contract, then the credit report of the entity is a very valuable source of information.
In the case where an entity may have had a few judgments or defaults against its name, Moore Forensics can determine that the entity may not be paying its suppliers on time and is therefore not operating well financially. Furthermore, at times where a judgment against the tendering entity is one of quite a large amount, Moore Forensics might note that the company would not have the financial capacity to both settle the outstanding amount and operate the contract simultaneously.
As such, it is made evident that this is imperative knowledge to have for, not only financial institutions, but local authorities, accounting firms, and investigative bodies as well. If you should wish to make use of this service, you can contact Moore CT Forensic Services here.