Credit Reports

Credit reports list your bill payment history, loans, current debt, and other financial information. They show where you work and live and whether you've been sued, arrested, or filed for bankruptcy.

How are credit reports used?

Credit reports help lenders decide if they'll give you credit or approve a loan. The reports also help determine what interest rate they will charge you. Employers, insurers, and rental property owners may also look at your credit report. You won't know which credit report a creditor or employer will use to check your credit.

Credit reporting agencies (CRAs) collect and maintain information for your credit reports. Each CRA manages its own records and might not have information about all your accounts. Even though there are differences between their reports, no agency is more important than the others. And the information each agency has must be accurate.

Why should you check your credit report?

Check your credit reports regularly to make sure that your personal and financial information is accurate. It also helps to make sure nobody's opened fraudulent accounts in your name. If you find errors on your credit report, take steps to have them corrected.

What is a Credit Score?

A credit score tells lenders about your creditworthiness (how likely you are to pay back a loan based on your credit history). It is calculated using the information in your credit reports. FICO Scores are the standard for credit scoresused by 90% of top lenders.

Credit scores influence the credit that's available to a person and the terms (interest rate, etc.) that lenders may offer. It's a vital part of credit health.

When you apply for credit whether for a credit card, an auto loan or a mortgagelenders want to know what risk they'd take by loaning money. When lenders order a credit report, they can also request a credit score that's based on the information in the report. A credit score helps lenders evaluate a credit report. It is a number that summarizes credit risk, based on a snapshot of a credit report at a particular point in time.

Description of requirements	Possible Points	Your Points
Explained in your own words what a Credit Report is and what information it contains. How could it be used by financial institutions?	30
Answered: How would you define what Credit Score is? What factors influence a persons credit score?	30
Answered: What credit score is considered good and what does this mean for a borrower?	30
Submitted at least 3 paragraphs	10