So, if you have recently obtained your first credit card , personal loan or auto loan , it's definitely in your best interest to build and protect your credit rating. Here are a few things you should know.
Lenders obtain credit reports on individuals and businesses as part of the credit approval process.
Credit reports are compiled by credit reporting agencies or service bureaus, such as TRW Credit Data and Trans Union. Lenders subscribe to one or more of these credit reporting agencies and pay a fee for their services. In turn, lenders supply the credit bureau with information regarding the payment histories of their borrowers. A credit report may also include state and county public records, such as bankruptcies, tax liens and court judgments. With your permission, lenders, potential employers and property management companies can obtain a credit report on you each time you apply for credit, a job or to rent an apartment.