A credit report is a record of your financial history, including your use of credit, your income, where you’ve lived, where you’ve worked, bankruptcies, defaults, foreclosures, and much more. It also contains your Social Security number and the account numbers for your credit cards, bank accounts, brokerage accounts, and mortgages. Sometimes, mistakes creep in, and it’s up to you to correct them.
In the U.S., the Big Three credit reporting agencies (CRAs) — Equifax, Experian, and TransUnion — compile credit reports and distribute them to lenders, creditors, landlords, employers, and others who need to assess your creditworthiness. The reports also form the basis of your credit scores which encapsulate your creditworthiness in a single number – actually, three numbers, one from each CRA.
Your credit history can determine if you can get a loan, and even where you live or work. Credit scores are built from your credit history and can determine how much you pay to borrow money for a car or house. Yet, many people don’t know where to start when it comes to building, improving, or protecting their credit history. Three common credit problems are:
Finding the appropriate credit solutions for your challenged credit situation can be confusing, tricky, and can affect your debt and credit differently.