Whenever a person decides to make a major purchase or any purchase that requires credit, a credit report will be run so the lending company can determine if this individual is a good risk or a bad risk.  This would include buying a house, car, boat, motorcycle, mobile home, RV, and even applying for a credit card.  The information contained within the credit report is what companies review to make their determination.

Any time you go to buy a new vehicle, a house, a boat, apply for a credit card, or try to secure some form of credit, the company or lender will start by running a credit report.  In fact, nowadays, most rental property owners will require that potential renters pay a non-refundable fee so he or she can run the credit report to see if the individuals would be worthy tenants.

When people apply for a car loan, home loan, credit card, or some other line of credit, their credit report is requested from the top three reporting agencies.  With the information contained within the report, lenders can determine if this individual is a good risk for loaning money to.  Although there are many different factors that a credit report is comprised of, the lender typically looks at debt to income ratio, past due bills, bankruptcy, write-offs, and other major things that could be considered a problem.

While there are many different credit reporting agencies, the top three include Equifax, Experian, and TransUnion.  It is crucial that people keep their credit in good order for a multitude of reasons.  First, when someone goes to buy a home, car, or some other large investment item, the first thing the creditors will look at is the person’s credit.