Other service providers, like cell phone and utilities companies, may use them to screen
you for deposit levels and cost of service.
A potential employer may use your reports to determine whether you will get a job.
(Note: According to the credit reporting agencies, actual scores are not used by
employers. A special version of the credit report is used by employers.) An existing employer may use your reports to determine whether you will get a
promotion.Having a positive credit history and good credit scores can open doors for you. Not having a
positive credit history or good credit scores can create obstacles for you and end up costing you
more money in terms of the price you will pay for loans, credit cards, and other services.
That’s why it’s important to pay bills on time and pay attention to what’s in your credit report.
The score is calculated based on the information in the report – so take the time to make sure
the information in your report is accurate.
What is in a credit report?
Companies collect information about consumers from many sources called information
furnishers. These companies organize this information into reports and then sell these reports to
businesses so they can make decisions about you. The biggest companies, called nationwide
credit reporting agencies or credit bureaus, that create credit reports include Equifax, Experian,
and TransUnion. Each of these companies is likely to have a file on you. Your files at all three are
likely to be similar, but there may be differences.
A credit report contains five sections. These sections include:
Header/identifying information—This includes your name and current address, as
well as other information that can be used to distinguish or trace your identity, either by
itself, like your Social Security number, or when combined with other personal
information, including date and place of birth. This information may not be complete—
all of the jobs you have held, for example, may not be listed. But what is listed should be
accurate. A credit report does not include some personal information such as race or
ethnicity.