Everyone must know what a credit report is-whether you are an ordinary cardholder, a mega-business organization or a regular consumer.
Basically, it is a very important document that contains all credit accounts.
To elaborate, it includes personal information, details of your account payment history, credit card or loan balance, credit limit or original loan amount and the different types of accounts you are currently using.
However, there are three types of reports that are fit to your lifestyle.
The annual report is one of the three basic types of reports.
Three of the biggest American credit reporting agencies - Experian, TransUnion and Equifax prepare an annual report every year.
This way, consumers can read and understand about their credit history and about American consumer credit history.
Stated in the Fair and Accurate Transactions Act of 2003, consumers can avail their free reports by simply making a request.
However, an extra fee is charged if the consumer avails more than one.
The annual report is obviously only for an individual.
Business organizations have a special one.
A business one, much like a personal report, contains essential information about the credit history of a business organization.
Also covered by the Fair and Accurate Transactions Act, it can be freely requested from the three companies.
It can obviously come into notice that the contents of a personaland business report are the same.
A consumer report is also known as the credit history of a consumer.
It is available at any point in time.
It is readily accessed in the internet but it isn't for free.
Consumer reports are able to help lenders determine the credibility of the debtor.
For an individual, it is best to go for a free report.
For a large-scale business, it is preferable to go for a business report.
And if you don't mind spending a few bucks, then a consumer credit report is just right for you.
Preference determines your type of report.