What Is A Credit Report?
In the old days, when you wanted a loan, you went to your local bank, where you knew your banker, and applied for credit or financing in person. Since the bank knew you and your personal information, they could tell what sort of credit risk you were. Today, financing is much more complex and since no one at your bank likely knows you personally, another way is needed to let banks and other lenders determine what type of risk you are. A credit report gives this information by providing details of your finances. A credit report tells readers about your credit history and can help others make decisions about what financial risk you constitute for loans and credits. A credit report lists missed payments, problems you have had paying off your loans, and lists any bankruptcies you have filed for in the past ten years. A credit report gives lenders all the information they need to determine whether to loan you money. A credit report can also determine what type of rate you get on a loan. If your credit report is spotty, you may still get a loan, but at a much higher rate than someone with a good credit report. The credit bureaus give your credit report to certain companies qualified by the Fair Credit Reporting Act to view your credit report for specific reasons. Companies who decide whether to give you credit or a loan are given permission to access your credit report through the application you submit. If you provide written consent, potential employers can view your credit report. If your potential employers offer you certain large salaries or life insurance, they may be able to see your credit report without asking for your permission. Insurance companies and some government agencies that grant