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About Your Permanent Record - Part IAs you know, there are three major credit reporting bureaus: Experian, Equifax and TranUnion. The majority of credit decisions are made by lenders that "pull" or request reports from those three bureaus. There are also some smaller local agencies that resell the large bureau information, but these are rapidly becoming a rarity in the market. Most banks, savings and loans, finance companies, credit card companies, retail stores, apartment complexes, and even some employers, will use a credit bureau's service, so they can be more aware of the financial risk they will be taking by extending the consumer credit. These lending organizations subscribe to a credit agency's service and pay a fee to have access to your credit profile. Subscribers know that your credit history is a good indicator of your future credit worthiness. Subscribers also use your credit file to verify the information on your credit application. The primary job of a credit bureau is to compile information about consumers' credit history. This includes information about your previous addresses and employment, mortgages and credit cards, judgments and liens, bankruptcies and possibly even rent payments. They track your outstanding debt, including how much you owe, who you owe it to, how much your payment is, and whether you've ever been more than 30 days late. They update this information on a regular basis and sell it to prospective lenders. Credit bureaus gather information about you from three sources: you, your creditors and public records. You provide a large amount of information to the credit bureaus simply by applying for credit. Most applications typically require you to divulge your place of employment and household income. Most of your creditors supply information to the bureaus on a monthly basis. Automatic subscribers report the date they first extended credit to you, your highest balance, repayment terms, timely payments and defaults. Finally, credit bureaus receive reports from public records on lawsuits, judgments, bankruptcies, foreclosures, tax liens, wage garnishments and criminal convictions. |
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