What is credit report all about?

• Credit reports are generally prepared by three credit bureaus namely, Experian, TransUnion and Equifax.
• These three credit bureaus or consumer rating agencies gather information about a borrower�s credit history from the creditors.
• Any negative listing in your credit report can remain for 7 to10 years. So, if you take wrong credit decisions, it can negatively affect you for a long period of ten years.
• The good thing is that, if you start afresh, open new credit accounts and manage them responsibly, you can improve your credit report.
• The creditors before approving a mortgage loan or an auto loan pull the credit report of the loan applicant from one of these credit bureaus. If they find the credit report satisfactory, only then they approve the loan.
• To monitor his own credit history, a person can place order for credit report with one or all of the three credit bureaus after regular intervals. It is important to regularly monitor your credit report in order to check accuracy and prevent inclusion of wrong information in the report.