What Is A Credit Report And What Is It Used For?

A credit report is a history of your use of credit and other personal information which gives lenders a snapshot of your credit history. Whether you are applying for a credit card, a car loan, a personal loan or a mortgage, lenders want to determine your credit risk level. In short, lenders want to know if they can rely on you to pay them back on time.

There are three major non government, privately held billion dollar companies that house the data for your credit file:

• Equifax
• Experian
• TransUnion

These agencies collect data and maintain records on millions of Americans and their bill payment histories. The reports tell lenders how much credit you've used, what types of credit you've used, how long you've had various accounts, and whether you pay your bills on time. Every year, billions of lending decisions are based upon the information in those reports.

Are Credit Reports Accurate?

• Nearly 80% of all consumer credit reports have significant errors.
• 25% of which are serious enough to potentially result in a credit denial 

How Do These Errors Occur?

• Loans, payment data or credit card information applied to the wrong account.
• When filling out credit applications with different names:
• i.e. Bill Smith versus William Smith
• Your Social Security number was entered incorrectly 
• A clerical error was made when the data is transferred from applications

Your credit report and score strongly influences how much credit that will be made available to you and the terms you are offered by lenders. The speed you are approved for credit, the interest rates you get, and decisions about the amount of credit are all determined by the information found in your credit report.

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Nearly 80% of all consumer credit reports have significant errors. If you have "challenged credit" our credit restoration services can help you to restore your purchasing potential so you can afford to buy a home, start a family, travel, invest or start a business.  Learn more ...