Credit
Reports and Credit Scores – What You Need to Know
We all know the importance of a good credit score. Many people consider their credit report to
be their financial report card. Whether
you’re buying a new car, sending your child to college or applying for a credit
card, your lender has a responsibility to evaluate the risk they’re taking by
lending to you. But what exactly does
that mean and how can you find your credit report and credit score?
Your credit report is a detailed description of how you have managed your credit in the past 7-10 years. The better your credit report, the more likely your credit requests will be approved and you’ll receive lower interest rates. Organizations known as credit bureaus or credit agencies, gather information from employers, landlords, public records and creditors in order to generate these reports. The major credit bureaus in the U.S. include Equifax, Experian and TransUnion. After compiling this information, these credit bureaus then sell your credit information to anyone who has a legitimate need to access the information (prospective creditor, landlord, employer, insurer, etc.).