A credit report supplies important information about a perspective customer, tenant, employee, etc. Each report contains a record of their credit history that includes information about:
- Identity. Name, address, full or partial Social Security number, date of birth, and possibly employment information.
- Existing credit. Information about credit a consumer or business has, such as their credit card accounts, mortgages, car loans, and student loans. It may also include the terms of their credit, how much they owe creditors, and their history of payments.
- Public record. Information about any court judgments against, any tax liens against property, or whether a bankruptcy has been filed and the status.
- Inquiries. A list of companies or persons who recently requested a copy of their credit report.
Credit reports are important because lenders, insurers, employers, and others may obtain a credit report from credit bureaus to assess how a consumer or business manages financial responsibilities. For example:
- Lenders may use credit report information to decide whether a consumer or business can get a loan and the terms for the loan (for example, the interest rate they will charge).
- Insurance companies may use the information in deciding on the type of insurance policy and which rates to set.
- Employers may use a credit report in their decision whether to hire you.
- Telephone and utility companies may use information in a credit report to decide whether to provide services.
- Landlords may use the information to determine whether to rent an apartment to someone.
CDIA consumer data reporting
Federal Reserve - credit