Before granting loans, lenders always check the annual credit report of the borrower. This report helps them to know about your previous transactions in the financial market. Borrower should also go through his/her credit report before availing credit; it helps them to know their status in the financial market. There are three major institutes which prepare this report: Equifax, Trans Union and Experian.

This annual credit report is free of cost and can be obtained once in a year, after applying to one of the main credit reporting agencies. In order to obtain this report you have to give some personal information like name, current address, social security number, date of birth, marital status etc. You also have to submit the information about your credit card accounts, current balance, previous credit card account, etc.

On the basis of these transactions, credit bureau assigns you a credit score. This credit score is very useful in knowing the credibility of the person for further credit, loans, etc. Credit scores are not included in this report; this is provided separately by the institutes.

It is important to check the credit reports regularly to avoid any mistake. Availing this report means evaluation of your credit condition, which prevents you from bad credit report. It also helps you to rebuild your credit scores.

One can also get this report through internet. There are numerous websites available who provide you with services that enable you to get all the information you need about credit reports. This is most convenient and time efficient compared to manually applying for credit report.

Annual credit report is beneficial for both borrower and lenders. Through this report, borrower can check all his/her credit transactions, good or bad. Afterwards, he tries to improve it so that he can take better term loans next time. On the basis of this report only lender approves or disapproved the loan amount of the borrower.