Identity and Credit Scores

Identity and Credit Scores

Identity score is gradually gaining popularity in the sector of banking and commercial dealing.

It is now been considered as a reliable concept to tackle the rising cases of forgery, corruption and deceit in business dealings.

By applying identity score banks and associated organizations can assess the public identity records.

Identity scores contain a detailed account of consumer data that assures a person’s legitimacy.

Identity score components can include personal Identifiers public records, Internet data, government records, corporate data, predicted behaviour patterns based on empiric data, self-assessed behaviour patterns, and credit records.

It is also right to mention that identity scoring is an upcoming measure that directly assists crime investigation and proposes to prevent anti-terrorism.

Identity scores can be broadly categorized under three heads:

a) public records,

b) private records and

c) credit records.

Public record can further be segregated into sections like national, state and local government records, financial records like bankruptcies, liens and judgments, property ownership records and law enforcement records for felony and misdemeanour convictions.

Private (non-credit) records can hold in itself any of the following details:

a) Bill and utility payments,

b) collected personal information from marketers or affiliates,

c) information provided to subscription-based Internet services,

d) billing information from medical services,

e) private background checks conducted by human resource departments and information submitted to any or all credit bureaus or credit reporting agencies and

*Auto insurance* underwriting scores generated from credit records.

Credit History

Credit according to the financial experts, is a contractual agreement in which a borrower receives something of value at a particular point of time and agrees to repay the lender at some later date.

Credit is believed to determine the borrowing capacity of an individual or company. Credit history is the record of someone or their organization s financial dealings based on credit.

It is an account of their past borrowing and repaying. It also contains facts about late payments and bankruptcy, if there is any.  A credit reputation can also be used as an alternative to credit history. Credit history is generally maintained by credit bureaus set up in several countries.

When a customer interested in obtaining credit applies for credit from a bank, whether it is a nationalized bank or private bank, his personal inputs are forwarded to these credit bureaus.

From time to time these bureaus updates the status of the credit holders  accounts, cross checks their personal information, like their address or contact numbers and records even the change of names, if there is any.

All these detailed information are required to understand the applicant s credit worthiness. Moreover these records are maintained to keep tract of the person s whereabouts and also to make sure that he pays his debts in the stipulated period as mentions in the credit related agreements.

Credits and associated financial dealings help in boosting a country s financial growth. Credit history further helps to determine annual percentage rate of a country s financial dealings.

Although it s hard to keep your credit record clean, in today s world it is almost mandatory.

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