What Is Credit Reporting?
If you've ever applied for a charge account, credit card, mortgage loan, personal loan, insurance, or a job, there's a file about you. This file, commonly referred to as your "credit report," contains information on where you work and live, how you pay your bills, and whether you've been sued or defaulted on one or more debts.
Companies that gather and sell this information are called Consumer Reporting Agencies or Credit Bureaus. These agencies compile this information about you and then sell it to creditors, employers, insurers, and other businesses.
The content of your credit report is very important as it can be the most important factor that a potential lender uses in deciding (1) whether to lend you money, or (2) what interest rate they will charge you.
Credit Reports often contain incorrect information which, when brought to the attention of the reporting company, necessitate correction. The Federal Fair Credit Reporting Act governs these agencies and their accurate reporting of information about you.