What is a Credit Report?
A report that is compiled by one or more of the credit reference agencies that details credit history, credit inquiries and facts about all accounts ever opened with respective credit lines and on-time or late payment behavior. Whenever you apply for a new form of credit, such as a mortgage, loan, insurance policy or credit card, the issuing organisation will check your personal credit file to understand the level of risk and/or profitability you pose.
Most credit card issuers, banks, and mortgage companies report an individual’s credit payment history to companies called credit bureaus. These bureaus compile an individual’s credit payment history and call it a credit report. Credit bureaus can report on your credit repayment history regarding credit cards and loans for the most current seven-year period, and in some cases for 10 years. If you file bankruptcy, it also will be shown on the credit report.You have a right to obtain a copy of your credit report and challenge any incorrect information gathered by the credit bureau. If the credit bureau cannot verify the information on its credit report within 30 days, the bureau must drop that information from the report. Can a credit card issuer demand the entire balance? If your credit card contract provides for monthly payments, the credit card issuers can’t demand early payment of the entire outstanding balance in a consumer transaction unless a default has occurred. A default occurs
A credit report is the information that is contained in an individual’s credit file. A credit file is created when a person first borrows money or applies for credit and contains all the information that a credit reporting agency has received from companies that have extended credit to you. On a regular basis, companies that lend money or issue credit cards to an individual – including banks, finance companies, credit unions, retailers – send specific factual information related to the financial transactions they have with you to credit reporting agencies.
