What are Credit Reporting Agencies?
There are three agencies that accumulate data on which to base your credit history and score. They rate the ability of a consumer to pay back a loan and are important to determine the perceived risk element incorporated into interest rates applied to the loan. Equifax P.O. Box 105873 Atlanta, GA 30348 (800) 685-1111 Experian P.O. Box 8030 Layton, UT 84041-8030 (800) 520-1221 Trans-Union P.O.
Credit reporting agencies (CRAs) are for-profit organizations that keep track of your credit history and report on these details to potential creditors, employers, insurance companies, lenders and landlords. They may also be referred to as credit bureaus. It is important to regularly check your credit history to be sure the information is correct and your credit scores are as high as they can be. There are three primary credit reporting agencies that keep track of your credit history and provide a Fair Isaac Corporation (FICO) score to potential lenders. These are TransUnion® Experian℠ and Equifax®. You are entitled to one free credit report per year from each agency, though FICO scores are not free. FICO scores can be received for what is generally a nominal fee. It is important to check all three credit reports from each credit bureau, because each one can contain different information. The annual free credit report can be ordered online, by mail, or by phone. You are also entitled t
Credit reporting agencies collect an individual’s financial information, compile it into a credit report and, for a fee, make it available to the individual and to other authorized parties, including financial institutions. Generally when you apply for a loan you give the lender permission to get a copy of your credit report. Companies that lend money rely on credit reporting agencies and the credit reports they generate to help them assess a customer’s ability to repay what they borrow. Although there are many local and regional credit bureaus throughout the United States, most credit bureaus are either owned or under contract to the nation’s three major credit reporting agencies: Equifax, Experian (formerly TRW) and TransUnion. What is a Credit Report? A credit report is a detailed history of a person’s borrowing habits and consists of the following information: • Identifying information such as your name, past and present addresses, date of birth and employment history; • Credit acc
Credit reporting agencies or consumer reporting companies collect pieces of information about people that could be sensitive in nature. Examples of such information are applications (loans, credit cards, insurance, and jobs), medical records, lawsuits, and declaration of bankruptcy. These pieces of information are turned into a consumer report, and are sold by the credit reporting agency to various business personalities such as landlords, employers, insurers, and creditors.
With all the hype about establishing good credit mixed with the scare of identity theft, this area of adulthood is quite a daunting one. Here are a few clarifications regarding this credit arena and some tips on how to deal with the other agencies involved. Credit is first of all your “reputation” so to speak of your financial history, the credibility and reliability you have as a consumer. Credit reporting agencies glean this information from you and your financial transactions and sum it all up in one nifty little report. This way employers, lenders, or any other person can access this information and use it to help determine the decisions they make regarding you. There are three primary credit reporting agencies in the US: Equifax, Experian, and Trans Union. The key to dealing with these agencies, especially when regarding something as sensitive as your official financial standing, is to stay aware of the information they have and keep them updated on what you’re doing. You may have
