What is a Credit Report
A credit report is a document detailing all of a person’s credit activities, such as loans, credit card balances, and payment history. All the information is summarized in a credit score. It is primarily used by lenders to assess an applicant’s eligibility for credit. Banks, credit unions, and other financial institutions are legally allowed to access people’s credit records from the three major credit bureaus, which are Experian, TransUnion, and Equifax.
Most of the information on a credit report is provided by the lenders themselves. For example, when a person misses a payment deadline, the lender will send the information to the three bureaus, who will then put the information down in a credit report. Likewise, they will send word when one pays on time or makes advanced payments.
The Fair Credit Reporting Act (FCRA) mandates the three bureaus to give consumers a free credit report every year, so one shouldn’t be troubled staying updated. Besides the annual credit report, it is also possible to get a free credit check from various credit institutions. These include myfico.com, truecredit.com, freecreditreport.com, creditreport.com, and credit.com. These sites also offer information on reading and improving credit scores, so they make excellent resources for new credit builders.