Things to Know About Credit Report Agencies

You may have heard about credit report agencies and probably wonder whether they can be of use when it comes to understanding your credit history. The following questions are the most frequently ones.

* Which are these credit report agencies?

Three main reporting agencies exist to keep the records of your credit score, TransUnion, Equifax and Experian. Apart from these ones, there are also other small ones, such as local agencies, but these three are the ones that financial institutions use most often in their inquiries concerning credit histories.

* Why have they been created?

The purpose of these credit report agencies is to register all of the financial activity associated that’s with you, to be used when loans are applied for, as the lenders need to know details on those who apply for the loan.

* What is their MO?

Credit report agencies generally use a numeric system for ranking your financial records in accordance with payments made on time, etc. Most lending institutions as well as car loan institutions share information related to your credit report whenever you apply for a loan.

Then the lenders’ decision will rely on the numerical value of these credit scores issued by the credit report agencies. All these agencies run their activity in compliance with Fair Credit Reporting Act – FCRA.

As to their particular Modus Operandi, credit report agencies can issue each person a credit report, and as such you can get three different scores depending on the way each agency sets the credit score. Their records will consist of your financial info regarding the payments you have made for your financial obligations, amounts of debt, debt to income ratio, and more.

They are also entitled to keep records on law suits, tax liens, legal judgments, your personal data (name, address, SSN, employer, income and spouse). In order to have the peace of mind that these credit reports are accurate, you should check on them at least once a year since you are entitled to do this and you wouldn’t want these reports to contain mistakes.

* How can I get a credit report for free?

As per the Fair and Accurate Transaction Act, these credit report agencies must release one free credit report per year that you can get when submitting your request to their online sites. After you have already obtained this report, issuing another one for the same year will cost you a fee.

But make sure that at least once a year you get this free report as there are many cases of identity theft recorded and you wouldn’t want to fall victim to it. Apart from this, errors can occur, as making mistakes is after all human, and so this can be true of those operating behind the doors of credit report agencies.

Credit Report Agencies

Related terms: 3 Major Credit Report Agencies, Agencies Offering Free Credit Report, 3 Major Credit Reporting Company, 3 Major Credit Bureaus, TransUnion Credit Report, TransUnion Credit Bureau, Free Credit Report, Phone Number for Equifax