A credit report is a detailed statement that contains information about a person's credit activity and current credit situation. It provides insights into one's credit history, including loan paying history, types of credit accounts, and payment behavior. The report is compiled by credit reporting companies (credit bureaus) from data submitted by creditors such as lenders and credit card companies. The key information provided in a credit report includes:
- Personal information: Name, former names, addresses, birthdate, Social Security number, and phone numbers.
- Credit accounts: Details of current and past credit accounts including account types (mortgage, credit card, installment, etc.), credit limits or loan amounts, balances, payment history, account opening and closing dates, and creditor names.
- Collection items: Missed payments, loans sent to collections, overdue child support details.
- Public records: Liens, foreclosures, bankruptcies, civil suits, and judgments.
- Inquiries: Records of companies that have accessed the credit report.
Lenders, insurers, landlords, and some employers use credit reports to evaluate creditworthiness, insurance risk, renting eligibility, or employment potential. Individuals are entitled to get a free credit report annually from each major credit bureau. Thus, a credit report offers a comprehensive overview of a consumer's credit management and repayment history, serving as a critical tool for financial decision-making by various institutions.