Last time you went to your dentist, he or she pulled your dental record, stuck the x-ray against light-box, and pointed out the good, the bad and the ugly.

Well, your credit report acts very much the same way. The three largest credit bureaus, Equifax, Trans-Union and Experian (was TRW), hold a record of your payment history based on data received from your creditors (credit card companies, auto lenders, department stores). They match it up against your name and your social security number.

Can I get some privacy, please!

Not if you wish to buy or refinance a home. A credit reporting agency "pulls" your report from the leading credit bureaus and is able within minutes to generate a report. The report details the number of creditors your have ("tradelines"), the maximum credit limit you were approved for, how much of it have you used up and whether you paid on time, paid 30 or 60 or 90 days late.

How does the report influence the lender in granting or denying a loan?

These days, risk evaluation had become so sophisticated, that lenders now rely on credit scoring. Your payment performance, good or bad, has a direct impact on your credit score. If you had paid your bills on time, there's a good likelihood your score will be high. If you've had late payments or you've used up your entire credit limit and are seeking more (frequent inquiries), chances are your score will be lower. If you were to get a lower score, that will not necessarily preclude you from getting a loan. However, you might be considered a higher risk. And a higher risk usually spells a higher interest rate.