What is a credit report?

What kind of information appears on a credit report?

How long do negative items stay on a credit report?

Can I see my credit report?

How much bad credit does it take to be denied credit?

Who looks at my credit report?

What is the difference between R1 and R9?

What is a charge off?

What is a credit report?

Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are many smaller credit bureaus around the country, virtually every credit bureau is affiliated with Experian, TransUnion, or Equifax.

Although these credit bureaus collect and maintain information on the vast majority of Americans, they are not affiliated with the government in any way. The credit bureaus are for-profit companies whose principal work product is the compilation of information known as a "credit report."

The credit bureaus are for-profit corporations and they sell your personal information for money.

The credit bureaus receive your personal information through the same lenders who grant you credit. They have agreements with each of these credit grantors that require the credit grantor to inform the credit bureaus of everything that occurs in your relationship with the credit grantor. If you make a payment late, the negative credit listing is quickly reported to at least one of the three major credit bureaus and is added to your credit history. Credit reports are not just a record of how you are currently managing your credit accounts. Credit reports are histories of everything you are doing with your credit now, and everything you have done in the past (for seven to ten years).

The credit bureaus collect this information, list it on your credit report, then sell it to other credit grantors who wish to see your credit history before they decide to lend you money. The credit grantors who review your credit are especially interested in any negative credit. If you have shown any tendency to pay late, or to disregard your financial commitments in the past, the creditors will likely reject your application or charge a higher interest rate.

Just like when you were in high school, your credit report is your financial report card to the world.