What is a Credit Report?
There are an estimated 230 million credit
reports on Americans, though some estimate the number is several times that. A
credit report is basically a file, most likely computerized, of information on
your history as a borrower. In practice, credit reports are much more than that,
and are sometimes used by people you aren’t attempting to borrow money from,
including employers.
There are 2 types of Credit
Reports….Standard and Investigative
- Personal data
– your name, current address, previous addresses, phone number, birth date,
social security number, spouse’s name and social security number, names and
addresses of current and previous employers, and sometimes your income level;
- Creditors and your accounts (also
called "tradelines") – this is information that includes a list of
your accounts, the type of accounts (revolving or installment, shared or not
shared), when they were opened, whether you paid on time, what was your
highest limit and highest balance, how much you still owe, and any negative
action such as collection or charge-off;
- Public-record information –
including judgments, foreclosures, tax liens and bankruptcies, record of
marriages or divorces;
- "Inquiries" – a list of companies
that have looked at your credit report in the past six months
Information about your financial history is collected
by companies called credit bureaus or credit reporting agencies. These companies
repackage the information they collect on millions of Americans and resell it to
a variety of companies, including:
- Banks and other institutions that issue credit cards
- Employers
- Insurance companies
- Collection agencies