creditreporting

Credit reporting is the process of compiling and maintaining records about an individual’s or business’s borrowing history. These records are collected from lenders, credit card issuers, debt collectors, public records, and sometimes utility or telecom accounts, and are used to generate credit reports and, in many markets, credit scores.

A credit report typically contains identifying information, a list of tradeline accounts with payment history, account status, credit limits or loan amounts, balances, and any public records such as bankruptcies, judgments, or tax liens, as well as inquiries from lenders.

Credit reporting agencies, or credit bureaus, are the entities that assemble and maintain these files. In many countries there are multiple agencies. In the United States the major agencies are Equifax, Experian, and TransUnion. Internationally, models vary but share the same core data: lenders’ reports, public records, and collections data. The reliability and timeliness of data depend on reporting practices and consumer dispute processes.

Credit reports are used by lenders to assess credit risk when approving loans or issuing cards, and by insurers, landlords, and, in some jurisdictions, employers. They may be accompanied by a credit score, a numeric estimate of credit risk derived from the report. Scoring models include FICO and VantageScore, among others; a score is separate from the full report but linked to it.

Regulation generally governs who may access a report, what data may be used, and consumers’ rights to accuracy and corrections. In the United States, the Fair Credit Reporting Act establishes dispute procedures and limitations on reporting. Consumers may request copies, dispute inaccuracies, and place security freezes or fraud alerts with CRAs where supported. Privacy protections and data security are central to modern credit reporting and ongoing governance varies by jurisdiction.