Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

What is a Credit Report?

See also

Everyone who has ever borrowed money or had a credit card of any kind has a credit report. A credit report is a collection of information about your borrowing and repayment habits. It lists the debts that you have, the amount of the monthly payment and the outstanding balance. The most important part of a credit report is the credit rating that you are given. This is the bottom line as far as banks and other borrowing agencies are concerned with when you apply for a loan. If you have missed payments or have been late with payments, it will show up on your credit report. If any action has been taken against you in an attempt to recoup any loans that you didn’t repay, this will have a devastating effect upon your credit rating.

When you apply for a job, your potential employer looks at your resume and makes a decision on the information provided whether he/she will hire you. A credit report works in the same manner. It is a resume of your financial dealings, on which lenders make decisions about whether or not you are a good risk for them to lend money to.

When looking at your credit report, lenders look for information in terms of the following questions:

• How promptly do you pay your bills?
• How many credit cards do you own?
• What is the total amount of credit extended?
• How much do you actually owe on all of your accounts?

If there are negative answers to any of these questions, it may seriously impact your ability to receive a loan or a credit card.

Where Does This Information Come From?

A consumer rating agency (CRA) also called a credit bureau collects information on the borrowing activities of anyone who borrows money. Companies that have granted you credit make regular reports about your accounts to three main CRA’s – Equifax, Experian (formerly called TRW) or Trans Union.

If you are late making your payments, or if you miss a payment, the creditor will inform the CRA of this information. Banks can also inform the CRA if your checking account is overdrawn or if you do not make your payments on your loan for a car, credit card or mortgage on time. If you are delinquent in making child support payments, this information will also show up in your credit report.



  • Mt. Everest avalanche
    Disaster strikes Mt. Everest as at least 12 people were killed in an avalanche
    Watch Video
  • Most Earthlike planet discovered
    The Kepler telescope has discovered the most Earthlike, possibly habitable planet yet
    Space News
  • Easter crosses create debate
    Easter crosses spark a debate of separation of church and state in Ohio
  • Chelsea Clinton is preggers
    Former first daughter Chelsea Clinton is pregnant with her first child
  • Stanley Cup playoffs
    The battle for Lord Stanley's Cup is on, don't miss a minute of playoff action
  • Ukraine discussed amongst U.S., E.U., Russia
    The U.S., E.U. and Russia agree on ways to diffuse the tension in Ukraine
    Watch Video

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about and apply today!