Your credit history is defined by your credit report contents and score. These two things will determine what kind of credit will be made available to you throughout your life AND how much that credit will cost you in terms of interest. Select a topic below to learn more about your credit report and score and how they might affect where you live, what you drive and even where you work. Click the links below to read more about each of the topics:
You may also want to check out the various Bank of America Resources to help you take control of your finances.
What is a Credit Report?
Think of your credit report like a report card that shows how you’ve managed your finances. Your credit report is kept on file by credit bureaus and includes your overall credit score, which can range from 300 to 850. The higher your credit score, the less risk you pose for potential lenders and therefore the better interest rates you’ll receive which translates to more money in your pocket for other things.
Here’s how it works…
There are three national consumer credit bureaus (Equifax, TransUnion and Experian) and they collect information from credit-granting companies like banks, finance companies, department stores, tax authorities, landlords, etc. From that information they each compile credit reports. The report is a file of information from all the companies you have done business with. It will show:
- Your open accounts with balances, including credit limits
- Whether you pay on time and in full
- Whether you make late payments or miss payments
- Whether any of your accounts have been turned over to a collection agency
- Any suits, judgments or tax issues, etc.
Move your mouse over the sample credit report below to learn more about each section of the report and the type of information it includes.
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