What Is A Credit Report?

A credit report is the sum of information gathered on your credit history, by a CRA. This information is then sold to credit grantors, such as banks, lending institutions and credit card companies.

Credit Bureaus

A credit bureau is merely a clearinghouse for credit history information. When a consumer applies for credit the potential lender requests a copy of that consumer's credit report. The bureau then assembles the information from public records and from reports sent from past lenders.

How The Credit Reporting System "Works"

The credit reporting system is a business relationship between two parties: 1) independent agencies that collect credit information called credit bureaus; and 2) merchants who pay for a copy of this credit information on an as-needed basis.

Credit Scoring

Credit scores are a numerical representation that's obtained by using a formula to rate your credit report. Computer programs take your credit report, analyze certain factors, and then assign a number to you that's suppose to tell creditors of the likelihood that a you will repay a loan or credit card on time.

Common Credit Terms

Terms you should be familiar with when looking at your credit. These terms will help you understand your free credit report.