About credit reports
Credit Reporting Agencies
Credit reporting agencies maintain files on millions of borrowers. Lenders
making credit decisions buy credit reports on their prospects, applicants and
customers from the credit reporting agencies.
Your report details your credit history as it has been reported to the credit
reporting agency by lenders who have extended credit to you. Your credit report
lists what types of credit you use, the length of time your accounts have been
open, and whether you've paid your bills on time. It tells lenders how much credit
you've used and whether you're seeking new sources of credit. It gives lenders a
broader view of your credit history than do other data sources, such as a bank's
own customer data.
Creating Your Credit Report
Your credit report does not really exist until you or a lender asks for it. It is
then compiled by the credit reporting agency based on the information stored in
that agency's file. This information is supplied by lenders, by you and by court
records.
Tens of thousands of credit grantors – retailers, credit card issuers, banks,
finance companies, credit unions, etc. – send updates to each of the credit
reporting agencies, usually once a month. These updates include information
about how their customers use and pay their accounts.
Your credit report reveals many aspects of your borrowing activities. All
pieces of information should be considered in relationship to other pieces of
information. The ability to quickly, fairly and consistently consider all this
information is what makes credit scoring so useful.
