Credit Report

You went to Cancun when you were 21 and signed up for a credit card. Congratulations, you are now on the map.

After running up debt on that card, your balance was reported to a credit reporting agency. If you had a rich parent, you probably got a bailout on this credit card. If you didn’t, you probably received a black mark on your credit report.

The credit report is a detailed summary of a person’s borrowing history. Every new account that you sign up for will end up on the report. This includes your mortgage, your auto loan, your credit cards, and any other credit account that exists.

By tracking your credit history, the credit report provides future creditors with a statement that offers your credit score, a calculation based on past payment histories and numbers of accounts to determine if you're worthy of new credit...or a potential default risk.