Your credit report is your lifetime of financial information compiled together to rate how you manage your finances. Do you pay your bills on time? How much credit do you have access to? Are you living up to the commitments you made to pay loans back?
The credit bureaus get the information from your utility company, landlord, lenders and merchants. After they gather all of your lifelong financial information, they sell it to businesses who can now analyze your credit history.
A creditor will make their decision based on the information in your report from the credit bureau.
Your credit report will consist of different types of information
Don't confuse your credit report with your credit score. They are two totally different things. However, your credit score is based on the information in your report. The higher your number, the better credit you have and the better opportunity you have to finance at a good interest rate.
How credit scores are calculated
Your credit score is broken down by several factors:
Given this breakdown you can see how all of your financial transactions impact your credit score.
What will Negatively Impact My Credit Score?
To sum it up, your credit history in your report will impact you greatly when applying for any type of credit.
AnnualCreditReport.com is the authorized source for the free annual credit report that's yours by law. The Fair Credit Reporting Act guarantees you access to your report for free from each of the 3 bureaus every 12 months. If you want to pull your report more often, there is a fee.
It is important that you pull your credit report every year to make sure there are no discrepancies on it. Keeping an eye on your credit will also protect you against Identity Theft.