Credit cards are a convenient financial tool letting you make purchases, book a hotel or rent an apartment. However, you cannot expect to get plastics as a matter of course. You need to submit an application and get approved. And just as you would doubt to lend money to a stranger, financial organizations won't grant you credit without knowing that you are a trustful and reliable borrower. Some years ago banks called each lender people stated on their application form before making a decision. Nowadays, they check credit reports. That's why it is important to know what data they contain.

A credit report is a gold mine of information about your previous financial experience. First of all, it contains your identifying information: full name, current and previous addresses, telephone number, SSN, date of birth, current and previous employers, and, if applicable, similar information about your spouse. Then, there are data about your credit activities: loans you have had, types of loans, the date of opening your accounts, current balances and your payment pattern over the previous two years. Credit reports also contain records on bankruptcy, tax liens, or monetary judgments.

Generally, all your borrowing-payment history, positive or negative, remains on your credit report for 7 years. Notice of bankruptcy is listed for 10 years. If you have late and missed payments, it will lower your chances to get approved for a credit card.

Credit reports are made up by consumer reporting agencies (CRA). They gather the information about your credit history and pass it to a potential lender. The most common type of a reporting agency is a credit bureau. There are three major credit bureaus in U.S. - Equifax, Experian and TransUnion. They collect and store your financial information and also calculate your FICO score based on the data in your credit report.

Credit bureaus can provide the copies of your credit report to the following requestors: lenders who are considering granting you credit; potential employers; insurers considering you for an insurance policy or reviewing your current policy; government agencies checking your financial status; and other individuals and organizations with a legitimate business need, for example potential landlords. Your spouse, children, other relatives, friends, neighbors and coworkers can get access to your credit profile only if you give them a written permission.

You have the right to know who has requested the copies of your credit report over a year (or 2 years for employment purposes). The names of the requestors are included in the Inquires section of your credit report. This information is not revealed to creditors and do not impact your ability to obtain credit.

You can receive one free credit report every 12 months from each major credit bureau. Just contact the companies through official sites or make a direct request via phone or Internet. Keep in mind that the three major bureaus do not necessarily share information with each other. The content of your credit report can differ at each bureau, so it is recommended to request copies from each one.

When you apply for a credit card, the lender reviews your credit report. If he sees a lot of negative items, he can deny the credit card application. In this case he must tell you what credit bureau produced the credit report. Then, you have up to 30 days to request a free copy of your report and look what items made you look untrustworthy in the lenders' eyes.