ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is a Credit Check? Employee Credit check, simply put, is when an employer pulls out the financial records of an applicant or current employee, to have an overview of their financial history.

Detailed explanation-2: -Anything less than two years is considered a short credit history. Once you have established between two and four years of credit, lenders will better understand how well you manage your credit accounts. A credit age of five years will raise your score as long as you’ve been managing your accounts well.

Detailed explanation-3: -Highlights: Making a late payment. Having a high debt to credit utilization ratio. Applying for a lot of credit at once. Closing a credit card account. Stopping your credit-related activities for an extended period.

Detailed explanation-4: -Become an authorized user. One of the quickest and easiest ways to build credit is by becoming an authorized user on a family member’s or friend’s credit card. Apply for a secured credit card. Get credit for paying monthly utility and cell phone bills on time.