Wednesday, July 24, 2013

3 Credit Bureaus

There are 3 major credit bureaus that are relied upon to make up the credit reports for people. They also make up their financial scores. These bureaus are the places where banks or other financial companies get the financial information about the credit history of an individual seeking credit. Credit bureau reports come from an industry that involves establishments which are mainly occupied in providing consumer credit reporting services. These credit reporting services are the main source of credit information for consumer markets. There are several credit reporting bureaus operating all over the world but the industry is led by 3 credit bureaus of Equifax, Experian and TransUnion. The 3 Credit Bureaus Scores The 3 credit bureaus provide credit scores through a credit report which is a single report that is made up of credit information from each of the three major credit history reporting agencies of Equifax, Experian and TransUnion. The personal information which is stored in these 3 credit bureaus will be assessed and then given a credit score. The score received from any of the 3 credit bureaus will inform a lender if a person is a new borrower. It will also inform on the kind of credit standing that he or she has. The 3 credit bureaus compile data from public records and creditors to create the reports for millions of people. All the 3 credit bureaus maintain a contract with an independent company which is known as Fair Isaac Corporation (FICO). It assimilates the public record data into a credit score. The credit scores range from 350 to 800 points with a good score being considered as 620 or above. About six years back, VantageScore was launched to compete with FICO’s score. The VantageScore scale ranges from 501 to 990 with a good score being considered as 700 or above. 3 Credit Bureaus carry information on your financial history The 3 credit bureaus contain personal data like your name, address, date of birth and your social security number. They also contain historical information like your previous address, current employer information and public records such as bankruptcies, judgments and liens. The 3 credit bureaus include history of credit card, loan and mortgage payments. There are times when people with good repayment habits and decent loan schedules have carried a poor financial credit score. This happens most often because of incorrect information that shows up on an individual’s report. When a corrective action is taken, all these 3 credit bureaus will address such issues immediately and revise the financial information that they have stored with them. These bureaus generate more than a half billion reports each year with information on consumer trade activities. 3 Credit Bureaus track borrowing behavior Most of the money lenders form their decision on the credit information from all 3 credit bureaus. The 3 credit bureaus report can be signed up for at the websites, and Credit grantors like to see the 3 credit bureaus report for major credit decisions like the approval of a mortgage home loan. The 3 credit bureaus will also keep records on who you still owe money to and how much you do owe. They gather this information from companies and public records that have a relationship with you as a consumer. The 3 credit bureaus keep records of how you have previously dealt when repaying loans and whether you have paid them back on time.

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