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)
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