The Credit Report
Fifty years ago or so, chances were good that the banker you asked to loan you money gauged your reputation first-hand, or at least could find someone who could. You would have applied for credit in person, often to people you knew at least casually. You and your banker might even have been neighbors at that time. Credit was extended based on “your good name” and on your reputation in the community for follow-through and trustworthiness.
Today, with banks all over the country extending credit, they don’t you from the man-in-the-moon except by your computerized credit history. Whether you’re a good guy, a pillar of the community, or any of the subjective input – is not a factor in their evaluation of you. They have never seen you, and they never will. Their decision as to whether to extend you credit is based on your reputation derived solely from that computerized credit report that is on file at the credit bureau.
Because the information doesn’t tell them everything they want to know, lenders have also developed ways to improve their odds of picking good risks over bad. They’ve developed credit-scoring systems that often involve complicated mathematical formulas. These scoring systems are used more and more to predict what borrowers will do in the future. Your “Credit Report” tells it all.
So, what are the sources of this thing called a Credit Report?
· Your bank
· Creditors (companies you owe)
· Credit card companies
All this info is filed with the credit bureau – it is the credit bureau that from that information creates your CREDIT REPORT.
Helpful Links Order Page What is the Credit Report?