Hi Iv'e been thinking about getting a credit card, but I have a few questions that need to be answered. First off, what is a credit report?
Well ma'am, a credit report is a record created by a CRA of your credit score.
What does the report contain?
It contains personal information, you credit account information, public record, and inquiry information
Well where does it come from?
Well they are created when a lender reports your account history to CRA's and then they keep a record of your account history.
You keep mentioning the CRA. Who are they and why would they need to keep a record of my account history?
Well there are 3 CRA's, Equifax, Experian, and TransUnion. They need to keep record of your account because everything on your credit report determines your credit score.
Your credit score is important because it lets lenders know if you are a risk borrower or not. A high credit score lets lenders know that you aren't a high risk borrower,but a low credit score lets them know that you are a risk.
Oh i've heard that credit scores are very important, why?
If you have a low credit score, lenders tend to hesitate on loaning you money because they assume that you wont pay them back, but if you have a high credit score, lenders wouldn't hesitate to loan you money because they know you'd pay them back
How would a high risk or a low risk affect me though