3 Credit Bureaus

There are 3 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, www.annualcreditreport.com and www.experian.experiandirect.com. 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.

Get Credit Score

It is fairly easy to get credit score. Many people want to know on how to get their credit scores. The credit report is the basis of your being creditworthy. Your credit reputation will be based on the background of your borrowing and repaying schedules and may also include any bankruptcy or late payment records. You can get credit score from your credit report.

It will help you to avoid unpleasant surprises if you know where you stand before you apply for credit. The credit score reflected on a credit report is usually final but may show some errors sometimes. You can clarify on these errors with any of the three major credit reporting bureaus of Equifax, Experian or TransUnion and fix those errors.

Information that is personal and belonging to your finances taken by the credit bureaus has to be maintained confidentially. If you protect your own details along with the security provided from the credit bureaus, you will have less probability of suffering from identity theft. You have to be careful with your personal information. You have to avoid using your date of birth, mother’s maiden name or part of your social security number as a username or password online.

Steps you have to take to get Credit Score

The first step to determine what you have to do to make sure that you will get the type of credit you want is to get credit score from a report and understand that data from your credit history that goes in making up that score. The credit reporting bureaus are now obligated to offer the means to get credit score from the time the Fair Credit Reporting Act has been passed as law. You can get credit score for free once a year from each of the major bureaus and keep a check on your credit status.

Credit scores are not part of a credit report that is updated at regular intervals by the credit reporting companies. They are calculated each time your credit report is requested when the user wants to get credit score. Good credit is a must for financial worthiness. The credit bureaus have collaborated to observe the Fair Credit Reporting Act and have set up means to get credit score easily. You can get credit score by visiting the website, www.annualcreditreport.com.

Get Credit Score updated regularly

Get your credit history updated continuously. Information is added or deleted when your payments are reported and when your accounts are opened or closed. The outdated information is removed. Most lenders select one or more scoring models to be applied to your credit report when it is being given to them to assess your history.
You can request the credit report once a year from each of the three major credit bureaus. A credit score will reflect your relative risk at the moment it is asked and it acts as a snapshot for that moment. It is always best that you keep the information on the credit history report updated. It is better not to wait more than a month to check your credit report after the initial application request as it is possible that the credit bureau’s verification system could fail and not match the personal information that you may have missed out on.

Get Credit Score from Experian

When you get credit score from Experian, it makes even the VantageScore available to you. VantageScore is the first credit score that is a result of a cooperative effort by the three major national credit reporting companies. This new website is www.vantagescore.experian.com. This score offers many advantages for both individuals and businesses over the previous credit scoring systems of FICO (Fair Isaac Company). It has proved to predict the lending risk precisely from a business perspective. Lenders are able to approve more applications safely, particularly of those people who have very little credit history. This is very important for people who are trying to enter the credit mainstream, especially young people.

When you get credit score from this Experian site, you will be able to associate familiar alpha numeric grading that will give you an immediate understanding of where your credit worthiness stands.

Credit Report Scores

Your credit report scores are numbers which are generated by a formula or a mathematical algorithm. This formula is dependent on the data in your credit report. This information is gathered on millions of people. The resulting credit score is a dependable prediction of how well you may be able to pay your bills. If your credit score is good, you can be approved for credit within minutes online. You can get pre-qualified for a car loan without the lenders even asking you how much money you earn.

Lenders will use various credit score models to assess if you are creditworthy. Different models will have varying scores. Lenders use some scoring models more than the others. The FICO (Fair Isaac Corporation) score is quite popular among them. FICO, which is a California based company, developed the first credit score as well as the FICO score.

Categories of Credit Report Scores

The credit score scale runs from 300 to 850. A majority of people will have credit report scores ranging between 600 and 800. A score of 720 or higher will get you attractive interest rates on a mortgage. A study has been done to categorize the credit scores break up. Two per cent of people have credit report scores of 500 or below. Five per cent range between 501 and 550. Ten per cent range between 551 and 600. Thirteen per cent range between 601 and 650. Fifteen per cent range between 651 and 700. Eighteen per cent range between 701 and 750. Twenty seven per cent range between 751 and 800. The remaining ten per cent have scores of 800 or above.

Each of the three major credit bureaus uses its own version of the FICO scoring method. The three major credit bureaus are Equifax, Experian and TransUnion. Equifax has the Beacon Score. Experian has the Experian Score or Fair Isaac Risk Model. TransUnion has the Empirica Score.

Variations in Credit Report Scores

The three versions of the major credit report scores can come up with varying scores as they use different algorithms. These variations can also be due to the differences in the information contained in different credit reports. There is another credit scoring model which is known as the VantageScore. All the three major credit bureaus have got together and have collaborated on the development of this score. Same algorithms are being used to compute this score. You can order your VantageScore at Experian’s website online for a sum of six U.S. dollars. The scoring range is from 501 to 990 with a corresponding alpha letter grade from A to F. The grading is A, B, C, D and F.

Whatever scoring models are used by the lenders, it is better for you to have good credit report scores. This score will have an impact on whether you will get credit or not and if you get credit, what kind of interest rate you will get. A higher credit score will lower your interest rate. The difference in the interest rates offered to a person with a credit score of 500 and a person with a credit score of 720 is about 4%. On a mortgage of around hundred thousand U.S. dollars, the difference in the monthly installments alone would be more than three hundred dollars as per mortgage calculator. As per a recent survey done by the National Credit Reporting Association, if you have an existing credit card, the next credit card issuer will look at your credit report scores to decide whether to increase your credit line or charge you a higher interest rate.

Databases can mess up Credit Report Scores

Computer databases can mess up credit reports sometimes. It is a known fact that four out of ten credit reports are incorrect. Many people, often, do not take corrective action on errors. The important thing to realize is that your credit report scores are simple three digit numbers based on information that may or may not be true. It can damage you in many financial ways. A bad credit rating will lead to many hidden costs.

Your credit report scores will determine the interest rates you receive on mortgage, credit cards or auto loans. Even the homeowners’ insurance rates are affected. Often, low credit report scores will also keep you from getting hired for a better job. This is the reason why your credit report scores can make the difference between living well and struggling to pay off your debts.

True Credit Report

A true credit report is a report issued by a credit monitoring service that enables you to check your reports and scores from all three major credit bureaus each month. Many people like to monitor their credit each month through a service known as True Credit. Using the true credit report allows them to improve their credit score considerably and prevents them from accidentally worsening their score by applying for credit that might not get approved.

For a sum like fifteen dollars a month, you can access the true credit report which compiles all three credit reports and credit scores in an easy to understand format. By doing this, you will be able to immediately contest any incorrect information on any of the included reports. When you challenge any item on your credit report, it can be done for free. The true credit report is worth its value for it saves you stress and time.

What does a true credit report reflect in its information?

A true credit report reflects a true credit score which is a combination of many factors concerning your credit and payment history. It is a combination of the information from the three major credit bureaus of Equifax, Experian and TransUnion. The information is calculated and taken from Fair Isaac Company (FICO) to assess your three digit credit score. It is therefore necessary for you to check your true credit report regularly.

Your true credit report will tell how credit worthy you may be with the information on it. If a credit card company or a lending institution contacts FICO for your score, they are given the lead to your true credit report. Your score determines whether or not you will be able to pay back to your lenders on time. A good credit score is typically above 620. You will then be able to avail of credit with a good interest rate.

The need for True Credit Report monitoring

True credit report is a simple TransUnion credit report service. It is primarily designed for identity theft protection services. It provides the credit ratings and the credit scores from all the agencies that monitor the score. Some true credit reports also monitor the VantageScore. It is a credit scoring system that has been developed by Experian, Equifax and TransUnion some years ago. It makes use of the letter grade rating and the points system within the range of 501 to 990.

There is a definite need to monitor the true credit report because the credit score service is of much importance as it helps you to correctly maintain your true credit. The purchase of a three-bureau report and the one-time credit score is always an option along with the monthly credit monitoring service. There is usually an offer of a one-week free trial for the credit monitoring service.

True Credit Report Monitoring gives you the power of information

The information given by the true credit report is powerful and it becomes more so when you can share this information. At the same time, you have to be cautious that only authorized people should have access to the information that you share. The information is of a sensitive nature. It becomes a matter of concern when specific personal information falls into the wrong hands.

Many people are accessing information belonging to others and using it maliciously. Identity theft protection services are thus becoming necessary because once your personal information gets compromised; these malicious people can easily know your true worth and use it to commit fraud. You will face the burden of paying for items that you have not purchased. True credit report is , hence, very helpful to tackle the problematic issue of information theft

Credit Bureau Report

The data required to make up a credit bureau report is taken from many sources in the trading areas that exchange such information. The bureaus get this information from credit grantors and verify employment details with employers. They collect all credit related public records from the courthouses. The users who access a credit bureau report are also interested in the historical status of consumers to understand their payment habits.

What is a Credit Bureau Report?

A credit bureau report is like a report card for adults. You would like to see good things said about you in your report card. The information on your credit bureau report will affect your financial well being in the future in many ways. You owe it to yourself to look at the credit bureau report every once in a while.

A credit bureau report has got all the information that you need if you are seeking a loan or applying for any kind of credit facility. Why is a credit bureau report so important? It is a record of your financial assets and liabilities that is collected by a credit bureau company for the financial institutions or money lenders to access. From the credit bureau report, you can easily assess whether a person pays his or her debts on time and whether he or she is credit worthy.

How do you handle Errors on your Credit Bureau Report?

Once you get a copy of your credit bureau report, you have to go over it carefully. You can check for any incorrect information. Negative credit information just cannot be removed easily from the credit bureau report. The report comes from establishments that are providing consumer credit reporting services. These services are the main sources of credit information for consumer markets. The information is retained in your credit file for seven years from the date of last activity on your account. Bankruptcy remains on your credit history for a decade.

When you find incorrect information on your report, you can write to the bureau stating that the information is incorrect and enclose copies of proof like statements or cancelled checks. The credit companies are required to verify any information that you may dispute. The credit bureau report will offer clues that are important about an individual’s payment behavior. Marketers may also use a credit bureau report and the information to segment their markets based on the credit performance criteria.

In a case of dispute and contest, the credit bureau will contact the company that is reporting the information and that company has an allotted time, usually a month, to respond to the credit bureau’s request. If the company does not respond in this time, the information has to be deleted from your report. All the three main bureaus maintain a contract with an independent company which is known as Fair Isaac Corporation (FICO). The credit scores range from 350 to 800 points with a good score being considered as 620 or above. VantageScore was launched to compete with FICO’s score and its scale ranges from 501 to 990 with a good score being considered as 700 or above.

How to get your Credit Bureau Report?

Many people think it is a difficult process to get your credit bureau report which will cost a lot of money. This is not the case. Credit bureaus are owned by or under a contract agreement with the three main consumer credit reporting agencies of Equifax, Experian and TransUnion. These bureaus generate more than a half billion credit bureau reports each year with information on consumer trade activities. The Fair Credit Reporting Act makes it easy to get a free credit bureau report online once a year from each of the three major credit reporting bureaus.

Each of these bureaus has a long history of providing accurate credit rating reports for people in the country. When you take the time out to know your credit score, it is possible to check for errors. For those who have a perfect credit score, it makes sense to check up on your score at least once a quarter to make sure that your score stays that way.

The best way to get your credit bureau report is to check out the website, www.annualcreditreport.com. The federal government offers its citizens a free annual credit bureau report here.