What is a Credit Report?
If you’ve ever applied for a credit card, loan, insurance, or a job, there’s a file about you. This file contains information on where you work and live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Companies that gather and sell this information are called Consumer Reporting Agencies (CRAs). The information CRAs sell about you to creditors, employers, insurers, and other businesses is called a credit report.
Credit reports are windows into your personal and financial life and health. Lenders and creditors look at your credit history to assess your creditworthiness. It’s to your advantage to know what your credit report says before you apply for credit so you can correct any inaccurate data.It can take up to six months for credit reporting agencies to make a change in your credit report, so give yourself at least that long before you start shopping for a mortgage, car or any other large purchase.
