Credit Reporting Bureau
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A credit reporting bureau is an agency that keeps track of information from parties that have extended debt, such as a department store that issued a card, or a bank that extended a home loan. These credit reporting bureaus use information from these parties to calculate a credit score and track the history. A score can be a critical factor lenders use to determine whether or not it will be approved. Other groups, such as insurance companies and landlords, are checking scores with other reporting bureaus to make decisions about ability to pay.
A financial history that a bureau makes available to third parties lists any credit-card accounts and loans, the balances on each account, and how regularly payments are made on time. If there are defaulted accounts or if a lender has taken action against defaulted payments, this information is also included. There are three major credit reporting bureau organizations operating nationwide that gather and sell credit information: Equifax, Experian, and Trans Union. These three credit reporting bureaus are competitors with one another and do not share information.
This information stays on a report for 7 years. Bankruptcy stays on financial history for 10 years. The best way to maintain a good rating or improve a poor one is to consistently pay bills on time. A credit reporting bureau will make financial history available to potential creditors, potential employers, insurance companies, government agencies, potential investors, or any party who has a legitimate business need for financial information, such as a landlord.
Because a report can be a critical factor in many important decision affecting financial well-being, it is important to annually review a financial status by requesting a free copy of the report from all three credit reporting bureaus. All credit reporting bureaus are mandated by law to provide one free copy each year, which can be requested online, via mail, or via telephone. If an error is found, it is important to contact the credit reporting bureau immediately. They are responsible for then researching the data and changing or removing data if it is indeed found to be incorrect. This can take up to 45 days, and they will report with the outcome and reissue someone a report if changes have been made.
Luke 6:34 says "And if ye lend to them of whom ye hope to receive, what thank have ye? for sinners also lend to sinners, to receive as much again." It is important to understand what lending does to the morale of a person and the future decisions of everyone involved with lending. It is important to realize that when borrowing from anyone, there is a slave/master relationship. Step back and evaluate if what is being lended is really worth the possible outcomes.
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