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What is a Credit Report?

Many people seem to have absolutely no idea what a credit report is and how it can actually benefit them. Well here we try to answer the question, "What is a credit report?" and take a look at exactly how a credit report can help you.

So firstly, to answer the question, a credit report is a report that details your credit history that can be used by companies that are considering extending you goods or services on credit, such as loans, credit cards or even phone contracts.

There are three companies that compile credit reports - Equifax, Experian, and TransUnion and each of them uses a variety of different sources to get an understanding of your credit history. Therefore each of the companies may actually have a different report for the one person.

Any company that is considering offering you a credit based service can contact Equifax, Experian, and TransUnion to get a copy of your credit report history and make an assessment of whether you are a good credit risk or not.

From that information they can then decide to not offer you that service or increase the price if your credit history is poor.

So what exactly does that mean for you?

Basically, it means that the better your credit report, the more likely you will be able to use credit based services and the cheaper those services will be.

As you can imagine, when it comes time for a significant investment such as a mortgage, it can be pretty important to have an accurate and good credit history as this can end up saving you thousands of dollars in repayments. Even on smaller loans, the savings in repayments can be quite significant.

It is very important then, to maintain a good credit history as well as making sure that your good repayment history is reflected accurately on your credit report.

The first thing you should do is to order a copy of your free annual credit report from Equifax, Experian, and TransUnion in order to look at it and go over your credit items to make sure they are accurate and fair.

While sometimes these companies make mistakes in reporting which can negatively affect you, the good news is that you can challenge any incorrect or misleading items on your credit report in order to repair your rating.

An easier way to do that is to hire the services of a credit repair and monitoring company who will do it on your behalf.

What is a Credit Report? was produced for Credit-Reporter.net

Source: www.articlesbase.com