A credit report show a person's credit activities and lists any credit-card accounts or loans they may have. It also lists the balances and how often payments are made and if any action has been taken because of unpaid bills.

Agencies that gather and sell credit information are called consumer reporting agencies (CRA). These agencies collect information about a person's credit activities, log them in giant databases. The agencies charge a fee to supply credit information.

The most common type of CRA is the credit bureau.

There are three major credit bureaus that operate nationwide -- Experian, TransUnion and Equifax. There are also smaller agencies that serve local markets.

A person's credit rating is based on a person's borrowing, charging and repayment activities. If a person has a good raiting, it makes it easier for them to reach financial goals like buying a home or a vehicle. Sometimes employers request to look at applicant's credit reports. This is why it is important to make loan and bill payments on time.

For more information about credit reports and how to obtain one, Local 4 business editor Rod Meloni suggests the following links:

www.truecredit.com

www.annualcreditreport.com

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