What does credit reporting mean?
The word "credit investigation" originated from Zuo Zhuan, that is, "a gentleman is credible in his words and has traces to follow". Credit investigation is a platform for professional third-party institutions to establish credit files for individual natural persons, corporate legal persons and other organizations, objectively collect, sort out and record their credit information according to law, and then provide credit evaluations and credit reports to credit institutions such as banks to help credit institutions judge business credit risks.
Nowadays, many institutions need to use credit reports, and many banks and other financial institutions need to check credit reports when issuing credit loans and customers apply for credit cards. In addition, many state-owned enterprises will also evaluate personal credit when transferring personnel.
With the increasing frequency of credit payment, in the future economic life, more and more places will use credit reports. In order to cope with this situation, in May of 20 19, the new personal credit information system will be officially launched. Compared with the old version, the new version keeps credit information for a longer time and provides more detailed credit records in the credit report.
Use of credit report:
In China, the provider of credit reports is the Credit Information Center of the People's Bank of China, which establishes credit files for all China citizens, natural persons and legal persons, and then provides credit information to commercial banks, other institutions and individuals in the form of credit reports to help users of these credit reports judge and control credit risks.
The credit records of individuals and legal persons in the past period of time will affect the current economic activities of the economy.
At present, credit reports are mainly used in financial institutions such as banks. In the banking business of bank loans and credit cards, it is often necessary to check the credit status of customers. Banks submit their own credit information to the Credit Information Center of the People's Bank of China for summary, and then the Credit Information Center collates it into credit files, and then gives it to institutions including banks for use. This process is the credit report. Credit investigation is helpful to improve efficiency and effectively control credit risk.