Legal Definitions - credit file

A credit file is a record of an individual's borrowing and repayment history. It contains information that determines their credit score, which is used by financial institutions to assess their creditworthiness. Credit files are created by credit reporting agencies and updated regularly with data from financial institutions and companies.

• Name, Social Security number, address, phone number
• Types of debt, dates accounts were opened, highest balances, current account balances, payments
• Bankruptcies, liens, judgments, and delinquent accounts
• Information on who has inquired about a consumer's credit in the past two years, and when each inquiry was made
• Current and former employers

For example, if a person has a credit card and makes payments on time, this information will be included in their credit file. If they miss payments or default on a loan, this negative information will also be recorded in their credit file. Financial institutions use this information to determine whether to approve a loan or credit application.

Another example is when a person applies for a mortgage. The lender will review their credit file to determine their creditworthiness and decide whether to approve the loan and at what interest rate.

Overall, a credit file is an important record of an individual's financial history and can have a significant impact on their ability to obtain credit in the future.