Learning Center
Basic Finance
How Credit Affects You
Preparing for Home Ownership
Steps for Buying a Home
Life as a Homeowner






 
Additional Resources
Module 2
How Credit Affects You
Credit Reports and Credit Score
line
< PREVIOUS | 1 | 2 | 3 | 4 | 5 | 6 | NEXT >

Did You Know
  • It is important to review your credit report at least once a year.
  • Credit reports contain four types of information.
  • You are entitled to see your credit score and understand how it was created.
line

What is a Credit Report?

A Record of Your HistoryA credit report is a record of your credit history, including your debt repayments, late payments and public records such as bankruptcies and tax liens. Your credit report shows whether or not you have paid your bills on time, the amount of money you owe to your creditors, and if you have defaulted on any loans. The most commonly used credit reports are compiled by three major credit-reporting agencies.

Credit-Reporting Agencies

Tracking Your Payment HabitsCredit-reporting agencies (sometimes referred to as credit bureaus) collect information about you and your credit history from public records, your creditors and other reliable sources. They compile information about your payment habits from creditors like banks, savings and loans, credit unions, finance companies and retailers. The credit-reporting agencies store this information in a computer database and sell it to lenders (also called subscribers) in the form of credit reports.

What They Do
When you apply for a new credit card or loan, the lender orders your credit report from at least one credit bureau, and usually two or all three bureaus, and analyzes the information to help decide whether to grant you credit. The credit bureau charges the lender a fee for every credit report requested.

What They Don't DoAlthough credit-reporting agencies provide your credit report to lenders when you apply for credit, the agencies themselves do not grant or deny credit. It’s up to individual lenders to evaluate your credit report and other relevant factors and then decide whether or not to extend you credit.

< PREVIOUS | 1 | 2 | 3 | 4 | 5 | 6 | NEXT >
  Countrywide Home Loans, a division of Countrywide Bank, FSB is an Equal Housing Lender. © 2007 - 2008 Countrywide Financial Corp. Trade/service marks are the property of Countrywide Financial Corp., and/or its subsidiaries. All rights reserved. The content of this website is provided for the convenience of our readers and is for informational purposes only. Readers are encouraged to use the content of this website to supplement their knowledge and to also seek out other reliable sources of information prior to engaging in the home financing and home buying processes. The information featured herein is intended to be accurate and we will make efforts to keep this website updated. However, due to the rapid changes occurring in the programs, products, services offered within the home financing industry, we do not guarantee the accuracy of the information presented. Countrywide is not responsible for the contents of, or products or services offered on, third party Web sites and provides links to such sites solely for your convenience. This is not a commitment to lend. All rights reserved.