What is a Credit Report?
A Credit Report provides information about a persons credit collected by the credit bureaus (Experian, Equifax, and TransUnion) and by consumer reporting companies. Credit card companies, banks, and lenders buy credit reports to analyze consumer credit and payment history.
- Open and closed credit cards
- Past collections
- Home loans
- Auto loans
- Student loans
- Monthly utility bills
Credit Reports will also list companies that have accessed your credit report called a credit inquiry.
With this information lenders and banks determine whether a potential customer will be denied or approved and if approved, the interest rate charged. Typically the lower you credit score, the higher the interest rate charged if the loan is approved.
Related post: Why Do Companies Offer Free Credit Reports?
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12:44 pm on October 27th, 2009
[...] What is a Credit Report? [...]