Your credit report is information about your borrowing and repayment history. It is put together using facts provided by your creditors and from public records such as court documents. Credit bureaus compile the data for potential creditors, employers, and others who can show they have a legitimate business reason to ask for it. Credit bureaus do not approve or reject you as a credit risk.
Your records are most likely to be requested from one (or all) of the three largest credit bureaus in the United States:
- Experian (formerly TRW)
- Trans Union
An annual survey published by Trans Union shows that most consumers feel the benefits of credit reports outweigh concerns about privacy. Businesses know that they can count on the information provided by the credit bureau. By using credit bureau information, we are better able to approve loans faster, for more borrowers, with less risk. The result is that we have fewer defaulted loans, which lets us keep our costs down.