What is a Credit Report?
A credit report is a detailed record of your credit history, and it includes important financial information including whether you pay your bills on time and how much debt you have. A credit score is a numerical index that represents the estimate of an individual’s “creditworthiness.” Many lenders and insurance companies use credit scores to determine eligibility for various products to consumers.
This is a report generated by one of three large credit reporting agencies detailing your credit history. It shows any delinquent payments, failure to pay, bankruptcies, foreclosures or other legal proceedings. Your credit report typically includes your FICO score, which is a standard formula used to calculate your credit history.
If you’ve ever applied for a credit card, loan, insurance, or a job, there’s a credit 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.
Equifax is one of the leading credit reporting agencies in the United States — there are two others. Each maintains information about you and your credit history. This information is gathered on an ongoing basis from many sources that have extended you credit. Lenders, employers, landlords, and other service providers buy that information in the form of a credit report to help them decide whether to approve your application for a loan, credit card, job, or housing, or to offer you a product or service at a particular rate. Because your credit file changes constantly, it’s important that you review your information regularly to check its accuracy.
