We hear a lot about credit reports and credit scores today and how important they are to our financial future. A good definition of what is a credit report will help you to understand how your credit report impacts your financial life.

A true credit report is a listing of your past credit history. It will show your payment history, types of loans and credit products that you have obtained, the inquiries into your account, bankruptcies, and allows potential lenders to evaluate how well you pay back your debts. There are three major credit-reporting agencies that gather and distribute this information. They are Trans Union, Equifax, and Experian.

The credit report is used to determine your credit worthiness, so get your credit report and review it carefully. There are a number of factors that can be used to determine if you are a worthy credit risk. There are times when people who pay all of their bills on time and never miss a payment, are not receiving the highest score that they could. If you have a high amount of debt, even if you are managing it, you will be considered a higher risk than someone with a lower amount. Learning what is a credit report will also help you to understand how your credit affects your life.

Choosing to obtain credit report information can also be a great tool for you to determine if someone is obtaining credit in your name. The incidents of identity theft are increasing and it is important that everyone keep an eye on their credit report to find cases of identity theft as soon as they occur. A single case of identity theft can have a devastating impact on your credit score. Make sure that you check your credit report from all three of the major bureaus frequently to ensure that there is nothing on your three credit reports that will cause financial problems down the road.

Get your credit report from all three of the major credit bureaus and go over them carefully. This is especially important if you will be applying for credit. Those who are seeking a home should make sure that they have a good monitoring and tracking strategy. Take action when there is a discrepancy on your credit report. Along with learning what is a credit report you should also learn how to keep it accurate.

The credit report is a good tool to ensure that your financial future is secure. It is your responsibility to make sure that everything in your report is accurate. When you are monitoring your credit report, you will be aware of inquiries into your history, the accuracy of the report and what your ultimate score is with all three credit bureaus.