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In their efforts to evaluate consumer credit worthiness, creditors depend on credit reporting bureaus to supply reports that provide more specific consumer information. Most creditors have automated systems that allow them direct access to credit reports from the different credit bureaus. Credit bureaus maintain reports that contain personal information about consumers, their account histories, legal actions, and creditors’ inquiries. Some lending institutions use more than one type of credit report because they are required to as a measure of meeting lending requirements. Others use multiple sources to ensure that they are getting a more comprehensive background on a consumer’s credit history. When a consumer completes a credit application, many creditors submit the personal information that is on the credit application to credit bureaus. This is how the credit bureaus compile personal information such as a consumer’s name, employment information, address, social security number, marital status, and telephone number. By using a credit report, the creditors will be able to cross-reference the information that the consumer provides on their application with the information that the credit bureau accumulated through other credit applications. Many credit institutions hire companies that research and verify that the information on a consumer’s credit application is accurate.

If you have an account with a creditor that reports to a credit bureau, your credit report will reflect a payment and account history. The information that a credit bureau reports regarding a consumer’s history on a credit account is referred to as a “tradeline.” On your credit report, there should be a “tradeline” for every creditor that reports account information to the credit bureau providing the report. 

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