3 Credit Report Agencies
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There are 3 credit report agencies which are agencies that the majority of creditors subscribe to in seeking a financial rating for any potential customers. These bureaus are companies that keep track of the financial activity that consumers have with current creditors. The bureaus describe any borrowing activity, both good and bad, to companies or lenders that a consumer is requesting credit from. Most creditors are associated with at least one of the three credit report agencies and some receive records from all three. The reports are based on how well a person is paying off debt and the consumer debt to income ratio. Potential lenders will make decisions about extending a loan based on these the facts included in the records and upon the over-all rating score that has been assigned by the bureau reporting.
Equifax, Experian, and TransUnion are the names of the major bureaus used by most corporate companies. These 3 credit report agencies retain national databases. Most financial loan grantors, such as banks, credit card companies, and car lending institutions, report to one or more of these bureaus, and in turn the credit report agencies will issue these creditors consumer debt records as a membership affiliation. Typically, these bureaus do not share data with one another. Each may offer a unique debt record on each consumer inquiry. The bureaus also offer a FICO score, and there is a possibility that the different bureaus may all assign a different numerical point to any consumer's record. Sometimes these reports can fluctuate by as much as 100 points.
Along with a FICO score, there should be a listing of reasons for the score. Each of the bureaus list consumers' loan accounts, auto loans, student loans, and name, social security number, and spouse's name. There should also be a detailed record of all credit transaction, including a listing of account numbers, account balances, the date the account was opened, payment histories, and current status. The information from the credit report agencies will also have recent inquiries for new credit listed, any collections an agency might be seeking, and public records such as court judgments, bankruptcy, tax liens, and foreclosures.
There are lenders that will look at all 3 credit report agencies and their FICO scores. This is why it is important for consumers to obtain a copy of a personal report from each agency and check each record for accuracy. "For wisdom is better than rubies and all the things that may be desired are not to be compared to it." (Proverbs 8:11) The Internet will provide more information on obtaining copies from the bureaus and the latest legislation that requires the bureaus to offer one record to each consumer at no charge.
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