Skip to main content

Credit Where Credit's Due

 


Credit Where Credit's Due

 

Credit reports 101

Used to calculate credit scores and determine creditworthiness, credit reports are comprehensive documents that detail the credit history of a person or business, including current and former lines of credit, bankruptcy records, and more. 

Credit assessments actually started in the 1700s as a way to evaluate businesses’ financial standing rather than consumers’. The early 1800s brought efforts to standardize the credit reporting system as more businesses were started that needed loans, and the labor movement’s success in the second half of the 1800s led to an increased need for standardized consumer (rather than business) credit reporting as workers made more money. 

 Today, credit reporting companies (think: the three major credit bureaus, Experian, Equifax, and TransUnion) source the information in credit reports from financial institutions, such as banks and credit card companies. They then provide credit reports to lenders, landlords, utility providers, and others who use the information for decision-making purposes. Credit scoring companies FICO and VantageScore use the information in credit reports to determine one's credit score.

 Explore everything else we've found on Credit Reports

Also, check out ... 

> Visualize the 5,000-year history of consumer credit in one infographic. (View)

> Find out how to get a copy of your credit report. (Read)

> Some argue that credit reporting promotes economic inequality in the US. (Watch)

> One in five Americans has an error on their credit report. (Read)


=================================================

Remember, you're not alone with NCOFCU.org

Comments