Credit history, reports, and scores refer to an individual’s or company’s past financial habits and actions: past borrowing, repayment, credit use, late payments, bankruptcy, etc..

When an individual requests credit for any reason from a bank, credit card company, financial institution, store, etc., their information is communicated to one or all three national credit bureaus. At that time, the report is updated with new information and status regarding their credit accounts, address, employment, along with other pertinent changes since the last inquiry.

  The information in the report is used by lenders, banks, and financial institutions to determine the individuals (or company’s / entity’s) willingness and ability to repay. This is known as credit worthiness.
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  Most consumer credit data in the US is collected and shared by 3 main national credit reporting agencies: TransUnion, Experian, and Equifax. All three Companies are for-profit and do not have any government affiliation.  

  Although these bureaus are for-profit, independent Companies; there are two government agencies responsible for the accuracy of the bureau’s data and their general oversight. The Federal Trade Commission (FTC) is responsible for the oversight of the consumer credit bureaus. The Office of the Comptroller of the Currency (OCC) oversees, charters, and regulates all the national banks regarding credit bureau reporting.
© 2008 CreditSkyRocket.com

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