Moneyzine
Contents
/Personal Finance/Credit Report

Credit Report

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 25th, 2023
Advertiser Disclosure

Definition

A credit report is a historical account of an individual's credit history, or payment patterns, for credit cards, mortgages, and other loans. Credit reports also include personal information such as the name, home address, birth date, and Social Security Number of individuals. Credit scores may be provided as part of a credit report.

Explanation

Lenders will often modify the terms and conditions of a loan based on the credit information found in credit reports. In addition to the above information, these reports also include data such as previous addresses, employment history, as well as public records such as bankruptcies, tax liens, or judgments against individuals.

The information appearing in a credit report is compiled from a variety of sources, including credit card companies, mortgage lenders, local banks and other financial institutions. The information exchanged includes applications for new credit as well as repayment of existing loans.

Prior to seeking a new loan for an automobile or home, it is advisable to make sure credit reports are accurate. The three major consumer credit reporting agencies are:

  • Equifax

  • TransUnion

  • Experian

Each reporting agency has developed a proprietary credit score, which is used to measure the relative credit risk of individuals. The components of this score includes payment history, outstanding debt, length of credit, diversity of debt held, as well as recent applications for new credit.

Related Terms

Related Content

  • What Can Help You Meet Your Budget While Shopping for Important Items?
    Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
    April 2nd, 2024
  • How to Make a Million Dollars in 10 Years
    Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
    November 18th, 2024
  • How to Apply Maslow’s Hierarchy to Your Money This Year
    You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
    November 18th, 2024
  • How to Tackle Multiple Savings Goals
    When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
    March 22nd, 2024
  • The Countdown to Early Retirement: 10 Expenses to Eliminate
    Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
    March 22nd, 2024

Contributors

Moneyzine Editor
The Moneyzine editorial team consists of writers and content specialists with diverse backgrounds.
Moneyzine 2024. All Rights Reserved.