What Is a Credit Report?

A credit report is one of those things most people have heard of but haven't necessarily looked at closely. Here's a straightforward explanation of what it actually is, what it contains and why it can matter when you apply for credit.

What Is a Credit Report?

A credit report is a record of your credit history, compiled by consumer reporting agencies based on information reported by lenders, creditors and other sources. It generally includes information such as:

• Accounts you've opened, like credit cards, loans or lines of credit
• Your payment history on those accounts, including any late or missed payments
• The amount of debt you currently carry
• How long you've had credit accounts open
• Public records that may be relevant, such as bankruptcies
• Inquiries — a record of who has requested to view your credit information

Credit Report vs. Credit Score: What's the Difference?

These two terms are related but not the same thing. Your credit report is the underlying data — the detailed record described above. Your credit score is a number generated by a scoring model that analyzes information in your credit report and summarizes it into a single figure, typically used as a quick shorthand. For more on how scores work, see our article on Does My Credit Score Affect My Loan Options?

You generally have multiple credit reports — one from each nationwide consumer reporting agency — and the information in them isn't always identical, since not every creditor reports to every agency.

Why Does It Matter?

Lenders, landlords, insurers and others may review credit report information as part of evaluating an application, depending on the type of product or service and applicable law. For loan applications specifically, some lenders may use credit report information to help evaluate your request — though as we've covered elsewhere, not every lender weighs this information the same way, and Breezy Financial itself does not make credit decisions.

What If You Find an Error?

Credit reports aren't always perfect — accounts can be misreported, and errors do happen. If you spot something that looks wrong on your report, you generally have the right to dispute it with the consumer reporting agency and with the company that furnished the information. It's worth reviewing your reports periodically so you can catch and address errors before they affect an application.

How This Connects to Loan Requests

If you submit a request through Breezy Financial, doing so doesn't itself affect your credit. If you're connected with a lender and move forward with their process, that lender may review credit report information as part of evaluating your request — using their own criteria, not ours. If you have questions about how a specific lender's process works, that lender is the right place to ask.

Bottom Line

Your credit report is simply a record — understanding what's in it, checking it periodically and knowing how to dispute errors puts you in a better position, whether or not you're actively applying for credit.