Credit reporting agencies get the information about your financial behavior by the different business people. They keep sending the information about your commitment and promptness in paying the loans and bills that are in due. It contains your social security number, address and employment information which are helpful in identification. This information is the same that you give to the lenders and it is not a factor that affect your report.
Lenders report on each account that have with them. It could be a bank card or a car loan or mortgage. They will inform about your credit limit, date of account opening, loan amount and payment history. When you apply for a loan or mortgage, it gives authorization to the lender to know about your credit report. He can inquire about you. This will be also reported in your credit report. This section of the report contains the data about the people who inquired about you in the last two years. It also contain a public record section and the data for this is collected from federal sources like courts. It includes the data about foreclosures, bankruptcies, law suits and judgments against you.
Opening number credit lines in a short interval of time affect your report in a bad way and lenders feel that it is risky to give a new loan to you. Multiple number of Inquires may reduce your score and this problem is more prominent when your credit history is not having a long track record.
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