The practice of monitoring consumers’ creditworthiness continued to evolve throughout the 19th and 20th centuries with the creation of the three credit bureaus:Ĭredit reports are prepared by credit bureaus. In 1826, a newsletter pointing out unreliable customers began to circulate in Manchester. The roots of modern credit reporting go as far back as the early 19th century, when a group of London tailors began to compile information on customers who failed to settle their debts. If you’ve declared bankruptcy, your report may go back 10 years as opposed to the usual seven. The bureaus, also known as credit reporting agencies, gather the information provided by creditors and lenders regarding the accounts you have with them. They may include personal information as well as credit inquiries performed by financial institutions.Ĭredit reports are issued by the three major credit bureaus: Equifax, Experian and TransUnion. How do credit reports work?įor the most part, credit reports detail your history of payments to creditors over the past seven years.
The information contained in your credit report also determines your credit score. A credit report is a detailed statement of your credit history - how you've handled your credit accounts and repaid your debts.Ĭredit reports include key financial information used by lenders, credit card issuers, and insurance companies to determine your creditworthiness.
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