Credit reports are generally prepared by three credit bureaus namely, Experian, TransUnion and Equifax.

These three credit bureaus collect information about a borrower i.e, credit history from the creditors and if you have any negative listing in your credit report it will remain for 7 to10 years. So if you have taken any wrong credit decision you need to suffer for a long time to improve it.

But you can improve your credit report by opening a new credit account account and you should manage it seriously.

The credit report helps you when you apply for any loan for example if you have applied for a car loan then first of all the creditors will check your credit history after collecting it from the credit bureaus and If they find the credit report satisfactory then only you will get the loan.

Importance of credit report : Credit report is very important to measure your financial status because it shows how much financially free you are in your life and it helps to solve your financial problems as well . As it is given by the 3 different credit bureaus , the figures may be differ from each other but the appropriate figure are decided by the lenders which check your credit report when you wants financial help from them.

1. Credit report includes your total number of credit accounts .
2. No. of total accounts you are holding like student loan account , installment , mortgage loan etc.
3. Total amount of debt you have .
4. Dates of oprning your credit accounts.
5. Name of your credit card issuers
6. Limit of your credit cards
7. Number of times you have applied for loans.

That was the bsic knowledge of credit report and its importance which will help you to improve your credit.