What is a Credit Report?

Credit report is a document, which contains detailed information about an individual’s credit payment history. This report is usually used by lenders to judge the creditworthiness of a person. A credit report includes your name, present and past address, employment history and social security number. The other details in a credit report are summary of your credit history, information about the number of accounts, type of accounts and past due accounts. Apart from these it also displays information about the number of inquiries made on a person credit history.

In short, a credit report consists of the following components:

• Loans taken
• Recent inquires made
• Number of credit accounts
• Bankruptcy details
• Late payments
• Comprehensive details about your accounts
• Credit score

Types of Credit Report

Credit Report is basically of two types. These are

• Annual Credit Report or Consumer Credit Report
• Business Credit Report

Annual Credit Report: This credit report is prepared by any of the three major credit bureaus which are Experian, Transunion and Equifax. It gives a detailed report about consumer credit history. Every year you can request a free copy of this report from any of the major credit bureaus. This credit report consists of personal date such as name, address, social security number and date of birth. You can also get online credit report instantly by paying the required amount.

Business Credit Report: This type of credit report gives information about the credit history of business organizations. It also gives synopsis about a company’s business so that the investors and creditors so that, they can take important business decisions. This proves to be convenient for creditors as they can decide whether to provide credit to these companies or not.

Most of the lenders thoroughly review your Credit Report to judge your financial capacity as borrower. Your Credit Report plays a vital role when you apply for different trade lines. Make sure you keep your Credit Report updated through any of the three major bureaus.