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Bankruptcy credit report is nothing but a documented statement. The credit report helps financial institutions to approve loan or card based on his repayment history. The customers are unable to make the payment due to the financial crisis is called as defaulter. Due to this the credit rating will get affected. In civil also the rating will get affect due to the non payment. The age history with the bank will come down. It will be a difficult task to get a loan or card from any other bank due to bankruptcy. These rating will stay as long as for seven years. Even the defaulter won’t get any job due to this default. Since the companies will check the records.

Many of them need to buy own apartment and vehicles with the help of loan, the interest rate and charges are high so that they may lead to bankruptcy. Once the customer become a defaulter it is better to preclose his loan so that he may get discount till 50%. To avoid bankruptcy and crash of credit report the person may get help from his friend and relatives.

There is an act called fair credit reporting act. Which is based on federal law, which indicates that the report will stay as long as for ten years. In India financial institutions checking civil reports to judge person’s financial condition. Because of this report bank can avoid approving financial products to defaulters.

In US there are three agencies called as Experian, TransUnion, and Exuifax. These agencies collecting customers credit report yearly. Following are the reason to dip in credit report, they are:
If the customer miss the payment and he repay the due amount after one month, even then the credit rate will go down.
If the customer utilizes the full available credit limit, the credit points will go down even after making full amount.
Once the customer miss the due date will get collections calls and also collection executive will send to a customer place to collect money. It creates bad impression and also affects credit rating.
The customer pre close the card lesser than his outstanding his credit rating will come down.
After six months non contactable cases will move to right off after some time these accounts are closed by the bank.
Once a customer misses the due date, will get late payment charges and financial charges based on his variable outstanding. This will affect his credit rating. In one time the person applying for many cards or loan it will also affect the rating. The person applying for another bank card or loan, they will check the credit report whether the applicant eligibility to get a product. If he founds any negative report, they will reject the application. Even insurance company also will check credit report to quote insurance amount. For salary, the person’s company will check the report to give appraisal or promotions based on his performance. If he is having bad credit report he may not get appraisal.