# Credit reference

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> Source: https://en.wikipedia.org/wiki/Credit_reference
> Source revision: 1349999956
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

{{Short description|Organisation that provides an indivitual's past credential record}}
{{refimprove|date=February 2013}}
A '''credit reference''' is information, the name of an individual, or the name of an organization that can provide details about an individual's past track record with [credit](/source/Credit_(finance)). [Credit rating agencies](/source/Credit_rating_agencies) provide credit references for [companies](/source/Credit_risk) while [credit bureau](/source/credit_bureau)s provide credit references for [individuals](/source/Consumer_credit_risk).

Other letters of credit reference might be written by [bank](/source/bank)s, which would provide basic information about how long the applicant has held an [account](/source/Deposit_account), what type of account it was, and whether there were any [overdraft](/source/overdraft)s or late payments noted.

Individuals and companies can carry out credit checks on businesses in order to assess their credit worthiness<ref>{{Cite web|url=https://huffingtonpost.com/mary-ellen-biery/credit-checks_b_2002684.html|title=Four Companies That Need a Credit Check|website=[HuffPost](/source/HuffPost) |date=24 October 2012}}</ref>

== How credit references are used ==
Credit references are used to help lenders quantify the [risk](/source/Credit_risk) of lending to a given applicant or to determine overall [creditworthiness](/source/creditworthiness). For example, if an applicant's credit history indicates proper, timely payments on all outstanding [obligations](/source/obligations), a lender may judge it more likely that the applicant will make timely payments on the requested [loan](/source/loan).
Your credit references show as credit tradelines on your credit reports. Whats known as credit tradelines is also known as credit references.

Whether the credit reference is a good one depends on if the payments have been made on time or not. The credit limit and payment history in the credit references give other potential creditors an idea on whether an individual will make payments on time or default.  Credit references also determine if an individual's credit score.<ref>{{Cite web|last=Morgan|first=Chris|date=2021-07-01|title=How to Fix My Credit Score Myself|url=https://credithelpinfo.com/fix-my-credit-score-myself/|access-date=2021-09-03|website=Credit Help Info|language=en-US}}</ref> 

A good credit score is typically a score of 700 and above but, creditors do have their own underwriting guidelines.

== See also ==
* [Credit](/source/Credit_(finance))
* [Credit risk](/source/Credit_risk)
* [Consumer credit risk](/source/Consumer_credit_risk)
* [Default (finance)](/source/Default_(finance))
* [Reference](/source/Reference)
* [Credit score](/source/Credit_score)

==References==
{{Reflist}}

Category:Personal finance
Category:Credit risk

{{finance-stub}}

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Adapted from the Wikipedia article [Credit reference](https://en.wikipedia.org/wiki/Credit_reference) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Credit_reference?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.