The quality of your credit rating is entirely up to you. There are three major national credit reporting companies collecting credit information about consumers. These companies have centralized computer files which contain data on millions of individuals. From these files a credit bureau can produce for a subscribing creditor, almost instantly, a revealing report about your past and present credit activity. Banks, finance companies, merchants, credit card companies, and other creditors regularly send to credit bureaus reports on their customers containing information about the kind of credit extended, the amount and terms, and paying habits.
Some information is collected by the credit bureaus from other sources, such as court records.
The credit file contains your name, address, social security number, and birth date. An indication of whether you own your home or rent Your file may contain detailed credit information. Each time you buy on credit from a reporting retailer or take out a loan at a bank, finance company, or other reporting creditor, a credit bureau is informed of your account number, the date, amount terms, and type of credit. Your record may indicate the largest amount of credit you have had and the maximum limit permitted by the creditor. Each inquiry about you may be recorded, any lawsuits, judgments, or tax liens against you may appear, as well.