A credit report is an aggregated reporting of all of your financial payment history as reported to one or all of the 3 major credit reporting bureaus.
When you apply for credit, a credit report is pulled from one of three credit reporting bureaus. Since there are similar credit bureaus around the country, almost every single credit bureau is somehow affiliated with Experian, Trans union, or Equifax.
Even though these credit bureaus maintain and collect credit reporting information on the majority of American citizens, they are not affiliated with our government in any way. These are private companies that maintain credit reporting history data for every American’s credit history as a corporate business. Credit reporting bureaus are private corporations that work for a profit. The primary purpose for a credit reporting bureau is to compile an aggregate the information their credit reporting history into what’s called a “credit report”. Credit restoration services use this official credit report to help you restore your credit and increase your credit score.
When credit repair companies work with the new client, they will get the credit report information across all credit reporting bureaus to determine which creditors have reported financial information and/or payments. Credit reporting bureaus earn their money by selling your personal information contained in your credit reports to creditors, credit grantors, potential employers, insurance companies, and even back to you. Yes, you may even have to buy your own information to see what’s on your credit report.
When a credit reporting bureau receives credit reporting information, they attach it to a specific person which is referenced by their social security number for consumers. Credit reporting bureaus have agreements with credit grantors that require the reporting of credit history and financial information to the credit bureau. In short, every credit grantor must report credit history information as well . A credit grantor cannot selectively single out a person and fail to report their credit history to one of the three major credit bureaus.
When you make a late payment to a credit grantor, that action is noted on your credit report. This negative credit listing is reported to one or all of the three major credit bureaus and is on your credit history report moving forward. Information stays on your credit report for seven years or ten years depending on the type of credit report.
It’s very important to understand that the credit history is a full seven or ten year accounting of all of your financial transactions summarized. It doesn’t matter what you are doing in a specific month or during the last six months. Your credit report establishes a history of pattern for almost 100 months.
Just like your grades in school help a college determine if you are a good candidate, your credit report is your financial report card to the world in regards to your ability to repay loans or make a payment.