- It is mandatory for you to have your credit report updated and accurate if you are looking for a job, renting a house, or making a business deal.
- Equifax, Experian, and TransUnion are the 3 major credit reporting agencies in the United States.
- You should periodically review your credit score reports to ensure everything is accurate.
If you are applying for any loan, your bank checks your credit report before approving your loan request. You might have witnessed many financial news media sources frequently talking about credit scores and the position of American debts. A credit report is a collection of all your financial transactions including:
- A record of your current and past accounts
- History of your payment
- Any negative information such as bankruptcies, repossessions, missed payments, etc.
- Credit card inquiries
Thus you can view all your credit report as ‘my free CA’. This information is retained by the 3 major credit bureaus.
A. The 3 Credit Bureaus and Your Credit Score Data
Your credit file is with one or all 3 major credit bureaus. Those are Equifax, TransUnion, and Experian. These 3 agencies have credit information of more than 300 million Americans.The information collected by these 3 bureaus is used:
- To calculate your credit score
- To make lending decisions i.e. whether to lend you the loan or offer credit card or not.
- To perform pre-employment background checks
- To assess lease applications
- To set rates of insurance
- To decide if you are expected to pay any utility deposit
For example, if your credit file is with Experian and you have applied for a job, your prospective employer may want to check your Experian credit report before hiring you.
B.How the Credit Bureaus Get Your Information?The bureaus collect your information from a variety of sources:
Creditors like credit card issuers and banks provide information about their customer accounts to the bureaus. Such creditors are also termed as “data furnishers”.
Information from Other Bureaus
In cases, if some fraud alerts are reported, the credit bureaus need to share the credit report data with one another. Sometimes, one credit bureau may purchase credit report from another credit bureau to evaluate some important customer transactions.
C.What is Annual Credit Report?
You are entitled to a copy of your credit score, under federal law. You can get your annual credit report from all 3 credit agencies once in every twelve months. You can get your annual credit report using the following steps:
- Go to annualcreditreport.com
- Enter your personal details including your name, SSN, Address, and DOB
- Make a request for your credit report
- Answer security questions
- Generate your credit report online
You are expected to check your credit annual report from all the 3 bureaus annually because the data in reports may vary slightly. This will ensure that your credit score is accurate and updated. It will also save you from getting trapped in problems like identity theft and overlooked payments.
Rashmi Chimmalgi is a professional content writer. She enjoys writing. Her focus is on writing quality and informative content for her readers. When she is not writing she is either reading books or cooking some unique recipes in her kitchen.