Your credit report will illustrate to new potential lenders, how you manage your credit and lists what type of credit you have been applying and whether or not you have begun an account with any lenders, the length of time your accounts have been open, and whether or not you have paid your bills on time.
Potential creditors such as banks, automobile finance companies and credit card companies review your credit report to evaluate the potential risk of failure to repay the credit. Credit scores help lenders determine who qualifies for a loan and at what interest rate/terms.
A credit score is a number that summarizes your risk level. Some factors that may make up your credit score and determine your access to credit are:
Typically, detrimental items to your credit stay on your credit report for 6 years, impending on which credit agency is being used to check your credit profile. You should check your credit report at least once a year. When you do, make sure all information is accurate.
When creditors review your credit report, they want to know you will keep your promise to repay the loan.