Definition
A credit report is a detailed summary of your financial history. It includes information on all your loans, credit accounts, and payment history, which lenders use to assess your creditworthiness.
Understanding Your Credit Report
A credit report comes into play early when you apply for a mortgage. It helps lenders see your financial behavior. Simply put, it's a detailed record of how you manage debt. For example, if you have a credit card with a $1,000 limit and a balance of $300, your report shows how close you are to maxing out that card. It's not just about scores; it includes payment history and any credit inquiries. One common misconception is that checking your own credit report will lower your score. It doesn't, so you can review it regularly to ensure accuracy.
