What is a Credit Report?
A credit report is a document created by a credit bureau that records your credit or repayment history, and any information on public record like bankruptcy, lawsuits, tax liens, etc. A credit record is used to determine your creditworthiness. Your permission is required for a prospective lender to access your credit report. A good credit report helps you make it easier to secure loans, so it is very important to maintain a good credit history.
A consumer credit report is a factual record of an individual’s credit payment history. Its main purpose is to help a lender quickly and objectively decide whether to grant you credit. If you have any type of a charge account, car loan, student loan or home mortgage, then information about you is probably stored in a consumer credit database. Most of the information in your consumer credit report comes directly from the companies you do business with, but some information comes from public records.
A credit report is like a financial report card. When you apply for credit, car insurance, financing, and even a job, often a credit report is pulled from at least one of the three major credit bureaus, if not all three. Credit bureaus maintain and collect information on every person they can throughout the country. These credit reporting agencies are for-profit corporations and sell your information for money.
A credit report is your individual credit history, compiled and reported by a Credit Reporting Agency such as Equifax. This report will be used to assist a potential creditor to evaluate an individual’s ability and willingness to repay debt. Banks, the IRS, our court system, department stores, utilities, phone companies, doctors, hospitals and other various companies submit payment information directly to the credit reporting agency.
