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Credit Report
The terms "credit history" and "credit report" are often used interchangeably. Both refer to an examination of the past financial activity of an individual or of a business in terms of past loans, payment record, overall control of debt (living or operating within financial means), stability and responsibility, and major financial incidents such as the filing of a bankruptcy.
Consumer or credit reporting agencies (often incorrectly referred to as "credit bureaus") amass the information in a formal report to which they apply an algorithm to determine a credit score. Although each credit reporting entity has their own mathematical formula, in general terms the average credit score in the United States is currently 640 with a score in the range of 800 to 900 being considered excellent. (Such scores are, however, quite rare.)
Credit reports are used in the evaluation process for the issuance of loans of all types and for the issuance of credit cards. Under law consumers must be allowed to see the information contained in their credit report upon request.
More terms explained
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