A credit report is a written document containing your past and present history with all your creditors. It contains information about all credit cards and loans you applied for. The report has details about the dates that each account was opened and closed. The amount owed to each creditor is also part of a credit report.

In addition to credit cards and loans, your credit report also contains information on other owed debts, including utility bills, late rent, and evictions. A creditor can also find a history of bankruptcy or charge-offs on an individual's credit report. It is a tool to help creditors decide whether to take the risk on a particular customer.

Credit reports are usually accurate, but mistakes can and do appear. It is important to look over your credit report to check for any incorrect information. There are three credit reporting agencies which most credit card companies report to, TransUnion, Experian, and Equifax. Every year, these credit reporting agencies will provide an up-to-date credit report, for free. If you find an error, you can clear it up by filing a report with the credit bureau to have it removed from your record.

Credit reports include marks that are either positive, negative or neutral. The length of time negative marks stay on a credit report varies, depending on what it is. For example, a bankruptcy stays on a credit report for ten years. All credit is purged from your report every 7 to 10 years from the time it was first incurred.

Credit Reports also include a credit score. This score is calculated from information on your credit report. Credit reporting agencies use a credit score software program to determine the score. It is a grading system on how debt is managed.

 Your score is directly based on how you manage your credit and debts. Certain factors lower a score, while other factors bring a score up. For example, having high credit limits, but maintaining low balances, raises a score. Paying bills late and carrying large balances on your credit cards, lowers scores.

A good credit report and high credit score are important not only to be able to obtain credit, but to get the best rates. For example, a person with a bad credit report and low score may still get a home loan, but their interest rate may be a few points higher than someone with a good credit report.

 Having a good credit report can help you save hundreds of dollars a month by paying lower interest rates on loans and credit cards. It should also be noted that credit checks lower your credit score. When you go to a car dealership, or to apply for an apartment, the company will check your credit score. When this is done repeatedly, the credit score may be negatively impacted. If you're in the market for a new car, it's advisable to not constantly check your credit from one dealership to the next. The bank may also raise the rate of interest based on the lowered credit score.