Private companies called credit bureaus determine your credit report based on your credit payment history. The three primary credit bureaus in the United States are Equifax, Experian, and TransUnion. These credit bureaus collect information from public records such as court documents, property tax rolls, and reports provided by businesses, like banks, or utility companies.

If you are ever declined because of credit based information the lender must tell you which report was used, and then provide you with a copy free of charge. You have the right to challenge this information if you disagree with it. Try to get a copy of your report before applying for any type of loan. It�s also a good idea to look at it once a year to be sure of where your credit stands.

Remember that you don�t need perfect credit for every type of loan. Some lenders offer financial products specifically tailored to those who have less than perfect credit.