A credit report is a record statement that has information about an individual’s credit history derived from numerous sources, including banks, credit card companies, collection agencies, and governments. This report is prepared by the credit bureaus. It is created when an individual applies for credit or borrows money for the first time from bank and other financial institutions. Lenders send regular updates of the borrower’s payment history to the credit reporting agencies. In this way, credit bureaus collect an individual’s financial information and create credit reports based on that information.
The report mainly includes summary of credit history such as the type of bank or credit card accounts along with the numbers, detailed account information – related to balances, credit limits, account opening dates, and their standing condition – whether they are past due or in good standing. Various lenders use this report along with other necessary details to determine an individual’s creditworthiness.
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