Understanding Credit Reports

If you’ve ever applied for a credit card, a personal loan, or home insurance, there’s a file kept about you. This file is known as your credit history. It is chocked full of information on where you live, how you pay your bills, and whether you’ve been sued, arrested, or have filed for bankruptcy.

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease.

Having a good credit report means it will be easier for you to get home loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.