How credit report and credit score affects your life?

 'CREDIT REPORT'

A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness, including:

1. Personal data (current and previous addresses, social security number, employment history)

2. Summary of credit history (number and type of accounts that are past-due or in good standing)

3. Detailed account information

4. Inquires into applicant's credit history (number and type of inquiries into applicant's credit report)

5. Details of any accounts turned over to credit agency (such as information about liens, wages garnishments via federal, state or county records)

6. Information on how to dispute any of the above information.Once negative information appears on your credit report, there is little you can do to clear it up if the information is truthful and accurate. Generally such information remains for about seven years, while bankruptcy filings typically stay on the credit report for about 10 years.

Credit score

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus.

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due tobad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of atrusted system.

Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. 

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