Credit reports and credit scores

A credit report is a record of how you have borrowed and repaid money: your credit accounts, balances, payment history, recent applications, and serious problems such as bankruptcies. In the United States, three major credit bureaus, Equifax, Experian, and TransUnion, keep these reports, and you can check yours for free at AnnualCreditReport.com and dispute any errors. A credit score is a number, often on a 300 to 850 scale, that summarizes your report to predict how likely you are to repay. The biggest factors are paying on time and how much of your available credit you use, followed by the length of your credit history, new credit applications, and your mix of credit types. Lenders use scores to decide whether to lend and at what interest rate, and landlords, insurers in many states, and some employers (with your permission) may also check your credit. Paying bills on time, keeping credit card balances low, and borrowing only what you need build good credit over time.

This explanation is AI-generated and can occasionally be wrong. 🚩 Report