Building good credit is an important part of your financial future. In fact, the better your credit, the easier it is to borrow money when you need it. Understanding how the process works can help you manage your credit wisely. You establish good credit when you show a history of paying your bills and debts on time.
Your credit report is a record of your individual credit history as reported by creditors to a credit bureau. Creditors include banks, retail stores, or other companies from which you have borrowed. Your credit report may include the following:
- A list of your credit cards and other loans or lines of credit, their limits, outstanding balances, and your payment history
- Information on the timeliness of your loan payments
- Identifying information, such as your Social Security number
- Information from public records (such as bankruptcies) and inquiries (creditors accessing your report)