A credit report is generated from a consumer’s file made at a consumer reporting agency (a “CRA”) that collects information about consumers’ history with credit. There are three big CRAs in the United States: Equifax, Experian, & Transunion. These three “credit bureaus” make credit reports by collecting data about consumers’ accounts furnished by creditors and gathered from public records.
Credit bureaus sell credit reports to creditors, landlords, and employers to evaluate consumers prospectively for loans, rentals, or jobs. Credit bureaus and other companies also sell credit scores made with credit report data to (purportedly) estimate the risk of lending to a consumer. Consequently, a good credit history and score are very important in order to obtain credit, jobs, and housing.