Whats the purpose of a credit report

Your credit reports are important pieces of financial information that help lenders measure your level of credit risk, or the likelihood you'll pay your bills on time. So, it's important to understand what a credit report is, as well as what you'd expect to find on one.

What is the purpose of the credit report?

Lenders may use your credit report information to decide whether you can get a loan and the terms you get for a loan (for example, the interest rate they will charge you). Insurance companies may use the information to decide whether you can get insurance and to set the rates you will pay.

What are the benefits of a credit report?

A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but may also enable you to get a lower interest rate on future loans.

What is the purpose of a credit report and who checks it?

Your credit report contains personal information, credit account history, credit inquiries and public records. This information is reported by your lenders and creditors to the credit bureaus. Much of it is used to calculate your FICO^® Scores to inform future lenders about your creditworthiness.