This guide contains:

Background on credit reports
Features to look for in credit reports
How to select the best credit report service for you

This independent guide was created to help you understand the basics of credit reports and to help you choose the right credit report provider for you. We do not provide any credit report services ourselves, so you can be confident that all of the information in this guide is independent and unbiased.

Background on credit reports
There are three major credit reporting bureaus that provide nationwide coverage of consumer credit information in the United States: Experian, Equifax, and TransUnion. Creditors, such as lending institutions, credit card companies, etc., report your credit information to these credit bureaus, and they in turn track your personal credit history in a customer record, which is then used to generate a personalized credit score.

Although most national lending institutions report consumer credit information to all three credit bureaus, smaller banks and other creditors may report to only one bureau--or even none. Because of this, your credit report from one credit bureau is not necessarily exactly the same as your credit report from another. On the other hand, when you apply for credit, your potential creditor may only look at one or two credit reports from the main credit bureaus, and not all three credit reports. Therefore, it is important to be sure that the credit information from all three credit bureaus is as accurate as possible.

Not to be confused with credit bureaus, credit reporting agencies are separate individual companies that are authorized to provide credit reports from all three credit bureaus. There are literally thousands of credit reporting agencies across the nation, and this site will give you insight as to how they work and will help you get your credit report wisely.

Reasons for monitoring your credit report
It is very advantageous to have a high credit score because there is greater chance of being qualified for additional credit and/or or favorable terms (lower interest rate) on your next loan. Naturally, the credit report is not the only component of qualifying for credit, and most creditors will ask for information about your monthly income, employment history, and your current outstanding debts in order to make a judgment as to your capacity of repaying your loan. You should monitor your credit report on an ongoing basis to:

-check for inaccuracies that could be lowering your credit score

-protect your credit report from fraud or identity theft- over 9 million people become victims of identity theft yearly