f
you’ve ever applied for a credit card, a personal loan,
or insurance, there’s a file about you. This file is
known as your credit report. It is chock full of
information on where you live, how you pay your bills,
and whether you’ve been sued, arrested, or filed for
bankruptcy.
Consumer reporting companies sell the
information in your report to creditors, insurers,
employers, and other businesses with a legitimate need
for it.
They use the information to evaluate
your applications for credit, insurance, employment, or
a lease.
Having a good credit report means it
will be easier for you to get loans and lower interest
rates.
Lower interest rates usually
translate into smaller monthly payments.
Nevertheless, newspapers, radio, TV,
and the Internet are filled with ads for companies and
services that promise to erase accurate negative
information in your credit report in exchange for a fee.
The scam artists who run these ads not only don’t
deliver — they can’t deliver. Only time, a
deliberate effort, and a plan to repay your bills will
improve your credit as it’s detailed in your credit
report.
The Federal Trade Commission (FTC),
the nation’s consumer protection agency, has written
this booklet to help explain how to
build a better credit report. It has six sections
