What is a Credit Report?
When a customer fills out an application for credit from a bank, store or credit card company, their information is forwarded to a credit bureau, along with constant updates on the status of their credit accounts, address or any other changes you may have made since the last time they applied for any credit. This information is used by lenders such as credit card companies to determine an individual’s or entity’s credit worthiness; that is, determining an individual’s or entity’s means and willingness to repay an indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
A Credit Report is a snapshot of your experience with credit-related accounts. Aside from some basic personal information, like your name and address to help identify your report, there are three main types of information on your Credit Report: Public Records: Court-related information, including bankruptcies, state and county court records, tax liens, monetary judgments and, in some states, overdue child support payments. Credit Inquiries: Names of businesses or individuals that have obtained a copy of your Credit Report, including lenders, landlords, and employers. Accounts: Payment history on all your Real Estate, Installment, and Revolving Credit Accounts.
A consumer credit report is a factual record of your credit activities. It reports all your credit accounts and outstanding loans, the balances on your credit cards and loans, and your bill paying history. Lenders are permitted by credit report laws to check your credit report and review it in order to determine whether or not to grant you credit….
A consumer credit report is factual record of an individual’s credit payment history. It is rather like a snapshot because it reflects information that is current as of that date, but is subject to change. Credit reports are provided to credit lenders for a purpose permitted by law. The main purpose of a credit report is to help a lender make a decision quickly and objectively about extending credit to an individual.
There are three major credit reporting bureaus: Experian, Equifax and TransUnion. . When you apply for financing or any type of credit, a credit report is pulled from at least one of these three bureaus. The credit bureaus receive your personal information through the same lenders that grant you credit. The lenders have an agreement with one or all of these credit bureaus that requires them to report on everything that occurs in the relationship with you and the credit lenders. If you make a late payment, this is quickly reported to one or all of the above-mentioned credit bureaus, and will show up each time your credit is pulled. Credit reports are like a history of everything you are doing with your credit now and for a period of time in the past. Basically the credit bureaus collect this information, create a personal credit report on you, and then sell it to any credit grantors who wish to see your credit history before deciding to lend you money or extend you credit. The credit gr
