Analogous to your report card in school, your credit report says it all. A credit report is a record of an individual's or a company's transactions, regularity of payments, late payments, bankruptcy and all kind of credit activities. Credit history and credit score are the other two terms having the same meaning as credit report. In the long run, a good credit history gives you an advantage over those with a 'not so good' credit history.



Whenever a credit form is issued to a customer by the bank or the credit card companies, the information about the individual is sent to a credit bureau where it stays penned in the record books. The organizations that lend money are given access to these personal data, depending on which the organizations issue loans to the customer. A good credit worthiness also involves consumer debt obligations successfully being paid on a monthly basis and may even help chop down the applicable interest rates.

Using too many credit cards with the balance touching the maximum limit and applying for too many credit cards aggravates the negativity in a credit report.

Generally the significance of credit report is a topic that does not need much discussion. A bankruptcy remains a stigma in the credit report for as long as 10 years and may deny the concerned person a loan from any organization. Late payments too leave a long lasting scar in the credit history. A good credit worthiness involves consumer debt obligations successfully being paid on a monthly basis and may even help chop down the applicable interest rates. Credit card companies use credit reports to determine the kind of rates and fee to be charged by the applicant.

A good credit history can benefit a person in many possible ways, from getting a mortgage to opening a new firm. If presented with a good credit history the credit card company offer higher credit limits.

However a bad credit history may hamper an individual in many ways. He may not be able to rent an apartment because of the late payment of credits in the past and may have to comply with higher interest rates compared to his better counterpart. Hence it is of utmost importance that a person manages his credit history well and does not let negativity seep into the record books.