Simply put, a credit report is a document that allows credit agencies to judge what kind of a lending risk you are to them. That is, it is a document that assigns a number to you based on how recommended it is for a bank to lend you money. Being familiar with what a credit report is, what it contains, and who issues it can therefore be a powerful tool in personal finance.
Credit Report Basics
Credit reports are issued by a number of credit agencies, which pass these scores on to lenders. This score is called a FICO score, because it is based on a system originated by Fair Isaac & Company. In the United States, the three major credit companies that score individuals are:
Credit reports can be a combination of credit score and credit history, giving both a general indication of a borrower’s ability to repay loans, and a more in-depth look at his or her financial history.
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