There are three main credit reporting companies: Equifax, Esperian, and TransUnion.  These companies gather information about you from a variety of sources to create an individual credit report.  They then sell it to businesses that offer credit to individuals in the form of purchases, credit cards, cash advances, or secured loans.  Businesses pay for these credit reports because it helps reduce the chance that they will do business with someone who, for whatever reason, might not be able to pay their bills like they agreed to do. 

Some of the other frequently asked questions about credit reports are:

• What is a credit report?
• How can I get my credit report?
• Why do I want a copy of my credit report?

Click here to see all the questions and answers about credit reports.