Many folks in America think credit bureaus are branches of government. They are not. There are three credit bureaus that collect and keep records of credit history and ratings on individual finances. They are for-profit organizations. They store and maintain credit scores. They make their money by charging fees when individuals, lending institutions, and other organizations ask for credit report of a particular individual. Even when you apply for a job, many companies now request the candidate's credit score.
The three major credit bureaus - commonly called Credit Reporting Agencies (CRAs) - are:
To report information to the three credit bureaus, a creditor fills out application for the purpose of becoming member of one of the three bureaus and not necessarily all three. The membership is voluntary. Also, no creditor has to report to any bureau. It's not required by the law.
Some creditors will report to one agency only just because they don't want to spend extra money to report to all three. That means your credit history may be different in all three bureaus. Their databases are privately maintained. They don't share information with one another. That's a general assumption among credit and finance gurus.
The three major credit bureaus - commonly called Credit Reporting Agencies (CRAs) - are:
- Equifax - Equifax is a global leader in turning information into intelligence. For businesses, Equifax provides faster and easier ways to find, approve and market to the right customers. For consumers, Equifax offers easier instantaneous ways to buy products or services, and better insight into and management of their personal credit.
- Experian (formerly TRW) - Experian is a global leader in providing information solutions to organizations and consumers. It helps organizations find, develop and manage profitable customer relationships by providing information, decision-making solutions and processing services. It empowers consumers to understand, manage and protect their personal information and assets.
- TransUnion - TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator. TransUnion offers a broad range of financial products and services that enable customers to manage risk and capitalize on market opportunities.
To report information to the three credit bureaus, a creditor fills out application for the purpose of becoming member of one of the three bureaus and not necessarily all three. The membership is voluntary. Also, no creditor has to report to any bureau. It's not required by the law.
Some creditors will report to one agency only just because they don't want to spend extra money to report to all three. That means your credit history may be different in all three bureaus. Their databases are privately maintained. They don't share information with one another. That's a general assumption among credit and finance gurus.
No comments:
Post a Comment