Your
Credit Report
Credit reporting
agencies maintain files on millions of borrowers.
Lenders making credit decisions buy credit reports
on their prospects, applicants and customers from
the credit reporting agencies.
Your report
details your credit history as it has been
reported to the credit reporting agency by lenders
who have extended credit to you. Your credit
report lists what types of credit you use, the
length of time your accounts have been open, and
whether you've paid your bills on time. It tells
lenders how much credit you've used and whether
you're seeking new sources of credit. It gives
lenders a broader view of your credit history than
do other data sources, such as a bank's own
customer data.
Creating
Your Credit Report
Your credit report does not really exist until you
or a lender asks for it. It is then compiled by
the credit reporting agency based on the
information stored in that agency's file. This
information is supplied by lenders, by you and by
court records.
Tens of
thousands of credit grantors — retailers,
credit card issuers, banks, finance companies,
credit unions, etc. — send updates to each of
the credit reporting agencies, usually once a
month. These updates include information about
how their customers use and pay their accounts.
Your credit
report reveals many aspects of your borrowing
activities. All pieces of information should be
considered in relationship to other pieces of
information. The ability to quickly, fairly and
consistently consider all this information is what
makes credit scoring so useful.
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