What is a credit report?

Credit report, also known as credit report, is an objective record reflecting the credit status of individuals or enterprises formed by credit reporting agencies based on the identity information provided by individuals or enterprises, as well as credit transaction information, non-credit transaction information, public information and other data collected from financial institutions, public sectors, non-financial institutions and other channels.

What is the role of a credit report?

The main function of credit reporting is to provide financial institutions and other relevant institutions with objective, accurate and timely personal or enterprise credit information to help them carry out credit assessment and risk control, thereby improving the efficiency and quality of financial services and reducing financial operating costs and risks.

In addition to financial institutions, credit reports can also provide reference value for other areas, such:

Individuals can check their own credit report, understand their credit status, timely find and correct wrong information, safeguard their legitimate rights and interests, improve their credit level.

Enterprises can select reliable partners to avoid potential risks and optimize resource allocation by querying their own or partners' credit reports to understand each other's business status, financial status, and performance capabilities.

By inquiring the credit reports of individuals or enterprises, the government can understand the overall situation and trend of social and economic activities, formulate reasonable policies and measures, and promote the construction of social credit system.

How to make a credit report?

The general process for producing a credit report is as follows:

Step 1: Credit bureaus collect personal or business identity information and other relevant information. Identity information includes name, gender, date of birth, certificate number, etc.; other relevant information includes loan account information, repayment record information, asset disposal information, etc. provided by financial institutions; tax arrears records, civil judgment records, and enforcement records provided by the public sector Records, etc.; telecommunications payment information provided by non-financial institutions, public utility payment information, etc.

Step 2: The credit reporting agency processes and sorts out the collected information. Processing includes data cleaning, data validation, data matching, data aggregation and other steps to ensure data integrity, accuracy and consistency.

Step 3: The credit bureau generates a credit report based on the processed data. Generating a credit report includes determining the report format, writing the report content, calculating the scoring model and other steps, the purpose is to convert the data into valuable information, to form a readable, logical, structured and clear credit report.

Step 4: Credit bureaus provide credit report inquiry services to information subjects and information users. The information subject refers to the owner of the credit report, I .e. the individual or enterprise, and the information user refers to the demander of the credit report, I .e. the financial institution or other relevant institution. Credit bureaus shall ensure the security, timeliness and convenience of credit reports, and at the same time respect the information subject's right to know, choose and object.

What is the content structure of a credit report?

The content structure of a credit report varies according to different credit bureaus and different information subjects, but generally includes the following parts:

Report header: including report identification information, query request information, other certificate information, fraud prevention warning information, objection information prompt, etc., mainly showing the basic attributes of the report and global prompt 10.

Basic information of individuals or enterprises: including identity information, spouse information, residence information, occupation information, etc., mainly reflecting the identity profile and socio-economic attributes of individuals or enterprises.

Summary of information: including digital interpretation, summary of credit transaction information, summary of non-credit transaction information, summary of public information, summary of inquiry records, etc., mainly for summary description and forecast assessment of credit status.

Details of credit transaction information: including loan account information, relevant repayment responsibility information, credit agreement information, etc., mainly showing all loan transactions under the name of an individual or enterprise.

Details of non-credit transaction information: including telecommunications payment records, public utility payment records, etc., mainly showing the payment status of individuals or enterprises when using post-paid services.

Public information details: including tax arrears records, civil judgment records, enforcement records, administrative penalty records, etc., mainly showing the information recorded by individuals or enterprises in the public sector to help reflect their credit status.

I or this business statement: mainly describes the individual or business on the contents of the credit report to make a description and explanation.

Objection marking: mainly describes the marking made by the credit bureau at the request of an individual or enterprise on the content of the contested credit report.

Query Record Details: mainly displays the query records of loan approval, credit card approval, etc. in the past two years, reflecting the history of individual or enterprise credit reports queried.

Report description: mainly explains and explains the proper nouns and contents in the report.

How to interpret and use credit reports?

The way to interpret and use credit reports varies according to different purposes and scenarios, but the following principles can generally be followed:

Comprehensive understanding: To fully read and understand everything in the credit report, don't just look at part of the content or just look at the numerical interpretation, and ignore other important details. At the same time, attention should be paid to comparing data from different time periods or sources to analyze the trends and reasons for their changes.

Objective assessment: To objectively assess the credit status of individuals or enterprises, do not blindly believe or deny certain data. At the same time, it is necessary to analyze its advantages and disadvantages, as well as the risks and opportunities, taking into account the actual situation and the characteristics of the industry. Don't simply give a good or bad one based on your credit report.ConclusionHowever, it is necessary to comprehensively consider various factors and make reasonable judgments and decisions.

Actively improve: to actively improve their own or business credit status, do not be affected by the bad information in the credit report or trouble. At the same time, it is necessary to regularly check the credit reports of oneself or enterprises, find and correct wrong information in time, and safeguard the legitimate rights and interests of oneself or enterprises.

Legitimate Use: Use your credit report legally and do not abuse or disclose the credit information of others or other businesses. At the same time, it is necessary to comply with the regulations and requirements of credit bureaus, do not tamper with or falsify credit reports, and do not obtain or provide credit reports from informal channels.

Application cases of credit reports in different scenarios.

In order to better illustrate the application value and considerations of credit reporting in practice, this paper combines the actual cases of Shangpu Consulting in the fields of market research, investment and financing consulting, IPO listing consulting, etc., and shares the following scenarios:

Market research: Shangpu Consulting once provided research services on the Chinese market for a European automaker. The purpose was to understand the scale, structure, competition, and trends of the Chinese auto market, and formulate strategies for its entry into the Chinese market. During the research, Shangpu Consulting used the credit report to inquire about the main participants in China's automobile industry, including manufacturers, dealers, service providers, etc., and analyzed their business status, financial status, performance ability, etc., so as to evaluate their competitiveness and cooperation potential. Through credit reports, Shangpu Consulting can not only quickly obtain a large amount of objective data, but also have an in-depth understanding of the internal operation mechanism and risk factors of the industry, providing customers with valuable market insights and suggestions.

Investment and financing consulting: Shangpu Consulting has provided investment and financing consulting services for a US venture capital fund in China's Internet industry, with the aim of helping it find and invest in potential Chinese Internet companies. During the consultation, Shangpu Consulting used the credit report to inquire about the major innovators in China's Internet industry, including start-up companies, unicorn companies, listed companies, etc., and analyzed their innovation ability, growth rate, profit model, etc., so as to evaluate their investment value and risk return. Through credit reports, Shangpu Consulting can not only fully understand the development status and trends of China's Internet industry, but also accurately identify potential investment targets and partners.

IPO listing consulting: Shangpu Consulting has provided IPO listing consulting services for a Chinese e-commerce platform on the Nasdaq market in the United States, with the purpose of helping it successfully complete the IPO process and obtain the best issue price and market value. In conducting the consultation, Shangpu Consulting used the credit report to query the main reference of the NASDAQ market in the United States, including listed companies in the same industry, potential investors, analysts, etc., and analyzed their financial performance, market evaluation, investment willingness, etc., so as to evaluate the competitive advantage and market positioning of customers. Through credit reports, Shangpu Consulting can not only effectively prepare and write clients' prospectuses, financial statements, roadshow materials, etc., but also effectively communicate and coordinate the relationship between customers and all parties to achieve the best IPO results for customers.

Summary

Credit report is an objective record that reflects the credit status of an individual or enterprise, and is an important basis for credit assessment and risk control by financial institutions and other relevant institutions. The production process of credit report includes four steps: collecting information, processing and sorting, generating report and providing inquiry service. The content structure of credit report includes ten parts: report header, personal or enterprise basic information, information summary, credit transaction information details, non-credit transaction information details, public information details, personal or enterprise statement, objection marking, inquiry record details and report description. The methods of interpreting and using credit reports should follow the four principles of comprehensive understanding, objective evaluation, active improvement and legitimate use. Credit reports have different application values and considerations in different scenarios, and this paper shares the application methods and experiences of credit reports in these scenarios, combined with the actual cases of Shangpu Consulting in the fields of market research, investment and financing consulting, IPO listing consulting, etc.