Credit Bureaus

Credit bureaus are the keepers of our credit history. Every time you purchase something from a company utilizing credit they have the option of reporting information about you to a credit bureau. As information about you accumulates, the bureaus generate a credit score to grade your financial behavior. This score helps or prevents you from getting future credit, jobs, insurance, etc.

In the U.S. there are three major credit bureaus: Experian, Equifax and TransUnion. There are hundreds of affiliate credit bureaus, each associated with one of the three bureaus named above. The credit bureaus collect, assemble and distribute accurate, timely assessments of a consumer’s financial behavior. The credit report assists lenders in making credit decisions. Good decisions on their part lead to profitability. Because credit bureaus are national, consumers are not limited to their local communities for making purchases. It’s a win-win situation for everyone involved.

By law, a credit bureau is only allowed to release information about a consumer to someone with a permissible purpose. A credit report consists of four main components: personal information, credit information, public records and requests for your credit history.

Personal information includes details of a personal nature reported to the bureau by the consumer, creditors or other sources. It can include name variations, driver’s license number, social security number, date of birth, spouse, current and previous address, employment history and telephone numbers.

Credit information gives a break down of each account on the report. It provides name of creditor, account number, date the account was opened, opening or highest balance, current balance, payment amount and if payments were made on time or late.

Public records include any information reported from the courthouse. This could be bankruptcies, judgments, federal and state tax liens and delinquent child support.

Request for your credit history contains a list of individuals or companies that have recently asked for a copy of your credit report. Sometimes the consumer gives permission for this while other times it’s due to pre-approved credit offers.

The best place to start in understanding your credit is requesting a copy of your individual report.

Margaret Norton, a Personal Life Coach/Writer/Speaker, resides in St. Peters, Mo.

(photo credit: andres rueda)

April 7th, 2009 by admin | Posted in Credit History | Comments (0)