Consumer Reports vs Credit Reports vs Investigative Reports

Consumer Reports History

Consumer Reports was founded in 1936, when consumers didn’t have many ways to tell the value, quality, or authenticity of products and services. The advertising regulations we have now didn’t exist back then, and many other regulations and laws that are commonplace nowadays hadn’t been established. That meant there were false advertising claims, unsafe practices, and other issues in the market.

Therefore, Consumer Reports was formed to give people access to credible information about products and services. Also, by independently researching and testing marketplace goods they were able to influence how things were manufactured, including the regulations set in place. Consumer Reports tests a wide variety of things, from automobiles to kitchen appliances.

Since Consumer Reports knows the importance of being independent to keep their research unbiased and credible, they have strict editorial independence policies, such as refusing outside advertising in their magazine and declining free samples for testing.

When the internet arrived in the late 1990s, Consumer Reports was a little slow on the uptake, resulting in a fall in their membership program and influence. Eventually, Consumer Reports did adapt to the new technology, creating their website with online articles that are available to subscribers, with some content being free to view.

Credit Report vs. Investigative Consumer Report

It's important to understand the difference between consumer credit reports and investigative consumer reports.

Credit Reports

Credit reports are compiled by credit reporting agencies from credit bureaus (such as Experian, Equifax, and TransUnion) and contain information about your credit history. Your credit history is then quantified into your credit score, which is also part of the credit report.

Investigative Reports

Investigative consumer reports are like detailed background checks. Your acquaintances might be asked about your character and reputation, and your relationships, community, activities, and other things are evaluated.

Investigative consumer reports require your approval to be conducted and are typically used to examine your suitableness, competency, or character for employment, tenancy, or licensing.

Bonus Tip: What Impacts My Credit Score?

Consumer credit reports are automatically compiled through credit reporting agencies. These agencies use the information in your credit reports to generate a credit score, which is a number that represents your creditworthiness.

Your credit score is important because lenders use it to determine whether or not you are eligible for a loan and, if so, at what interest rate. It’s also used to determine interest rates and acceptance for credit cards, leases, mortgages, insurances, utilities, and business services.

A high credit score means you're a low-risk borrower, leading to lower interest rates on loans or other services. A low credit score indicates you’re a high-risk borrower, which leads to higher interest rates and may mean you won’t be approved for the loan, lease, insurance, etc.

You can get a higher credit score by always paying bills back on time, building credit over time (one good way is to get a credit card if you don’t already have one), and not using too much of your credit limit (keep each statement balance of your credit card under 30% of your total spending allowance).

Things that can lower your credit score include not paying bills on time, opening too many credit accounts at once (such as getting a new credit card within 6 months of your last one, especially if it’s your first credit card), and having too few credit accounts in good standing.

How long you’ve had credit accounts also affects your score—the older the better. This lets creditors know that you’re experienced in credit-related dealings.

The largest factor impacting your score is your payment history, so it’s important to always make your payments on time. At the very least, be sure to pay the minimum amount due, which is often lower than your statement balance or the rest of the bill.

If you do miss a payment date, just pay it as soon as you can. If it doesn’t happen often and wasn’t more than 30 days late, your credit score will recover.