credit reports summarizes historical
financial information collected to determine an individual's or
an entity's creditworthiness, that is, the means and willingness
to repay an indebtedness. Financial institutions utilize credit
reports to gauge credit reputation, and thus determine whether
to extend credit, and on what terms. With the adoption of risk
based pricing on almost all lending in the financial services
industry, this report has become even more important since it
is usually the sole element used to choose the interest rate.
In the U.S. the three major credit reporting agencies are Equifax,
Experian, and Trans Union.