What Is a Credit Report and What Is on It?  

A credit report is a record of your credit history that includes information about your borrowing and repayment activity. It is maintained by credit reporting agencies (also known as credit bureaus), which collect and store data about your credit accounts and payment history. Your credit report is used by lenders, landlords, and other businesses to help them evaluate your creditworthiness and make informed decisions about whether to extend your credit or approve you for a rental or another service.

Your credit report includes a variety of information, including:

Personal information:

A credit report contains personal information about you, including your name, address, date of birth, and Social Security number. It may also include information about your employment and income. This information is used to identify you and to verify that the credit report belongs to you.

Credit accounts:

A list of your current and past credit accounts, including credit cards, loans, and lines of credit. It includes the type of account, the credit limit or loan amount, and the account status (e.g., open, closed, in good standing, or in default).

Payment history:

Your credit report includes a record of your payment history for each of your credit accounts. It shows whether you have made your payments on time, whether you have missed any payments, and whether you have paid your accounts in full or carried a balance from month to month. Late payments, missed payments, and accounts in collections can all have a negative impact on your payment history and credit score. A record of your payment behaviour on your credit accounts, including whether you have made payments on time, missed payments, or had any accounts sent to collections.

Credit utilization:

When you use credit, you are comparing how much of your available credit you are using to your actual usage. It is determined by dividing your overall sums due by the sum of all of your credit limits, and it is represented as a percentage. In other words it is the percentage of your available credit that you are using on each credit account and in total.

Credit inquiries:

Credit inquiries, also known as credit checks or credit pulls, are recorded on your credit report when someone checks your credit history. There are two types of credit inquiries: hard inquiries and soft inquiries. It is important to monitor your credit inquiries because a high number of hard inquiries in a short period of time may indicate to lenders that you are taking on a lot of new debt and may be a higher risk borrower. It is generally a good idea to minimize the number of hard inquiries on your credit report, as this can help to improve your credit score.

Public records:

Public records may appear on your credit report if they are relevant to your creditworthiness. For example, if you file for bankruptcy or have a court judgment against you, this information may appear on your credit report. Public records can have a significant impact on your credit score and may be considered by lenders when evaluating your credit application. It is important to review your credit report regularly to ensure that the information it contains is accurate and up-to-date.

Credit score:

Your credit report includes your credit score, which is a numerical representation of your creditworthiness. Lenders and other businesses use your credit score to assess the risk of lending to you or providing you with a service. A higher credit score typically indicates a lower risk of default and may make it easier for you to qualify for credit or a better interest rate on a loan.

Bottom line:

Your credit report is an important factor in determining your credit score, which is a numerical representation of your creditworthiness. Lenders and other businesses use your credit score to assess the risk of lending to you or providing you with a service. A higher credit score typically indicates a lower risk of default and may make it easier for you to qualify for credit or a better interest rate on a loan.