What is a credit report

[CreditDetailer]

Whenever you apply for any type of credit or financing, a credit
report is pulled from at least one of the three major credit bureaus.
While there are hundreds of smaller credit bureaus around the country,
virtually every credit bureau is affiliated with either Experian,
Trans Union, or Equifax. These credit bureaus collect and maintain
information on the vast majority of Americans, but they are not
affiliated with the government in any way. The credit bureaus are for-
profit corporations and they sell your personal information for money.

The credit bureaus receive your personal information through the same
lenders who grant you credit. They have agreements with each of these
credit grantors that require the credit grantor to inform the credit
bureaus of everything that occurs in your relationship with the credit
grantor. If you make a payment late, the negative credit listing is
quickly reported to at least one of the three major credit bureaus and
is added to your credit history.

Credit reports are not just a record of how you are currently managing
your credit accounts. Credit reports are histories of everything you
are doing with your credit now, and everything you have done in the
past. The credit bureaus collect this information, list it on your
credit report, and then sell it to other credit grantors who wish to
see your credit history before they decide to lend you money. The
credit grantors who review your credit are especially interested in
any negative credit. If you have shown any tendency to pay late, or to
disregard your financial commitments in the past, then the creditors’
computers will immediately reject your application. Just like when you
were in grade school, your credit report is your financial report card
to the world.