Understanding Credit Reports

According to Google definitions, a credit report is “a report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.” From the College Plastic perspective, a credit report is what decides if you get a car loan, a home loan, or a loan for any other big ticket item.

Your credit report basically includes your history of payments on a credit card, a Sears card, or a cell phone plan. Every time you missed a payment it was noted on your credit report and every time you apply for any type of loan from a company they look up your credit history. Your credit report tells companies what they should loan, for how long, and at what percentage interest rate.

College students usually don’t even have much credit history yet, unless they have a credit card, but it is a good idea to get your credit report at least every two years to make sure it accurately shows your credit history. The three major companies that provide credit reports are Experian, Equifax, and Trans Union and they will provide you with a free credit report once a year by request. If there are any mistakes on the credit report you can get them fixed in writing and sometimes you can even get a company to remove a point against you if it has been a significant time or for good reason.