Getting to Know The Credit Bureaus

Consumers are encouraged to get a copy of their credit report and check their credit rating from the credit reporting agencies. Nevertheless, not everyone understands what the credit agencies actually do. In this post, we will talk about the role that credit bureaus play in building credit history.

There are other agencies that provide credit reporting but there are only three major credit bureaus in the United States. These are Equifax, Experian and Trans Union. These companies are the leading credit reporting bureaus that you can order your credit report from. Some individuals have the idea that all three agencies are the same. In fact, each agency is a separate firm that does its own credit reporting.

When you order a copy of your report from Equifax, it may not be identical to the report released by Experian or Trans Union. Once you apply for a loan or a credit card, a potential creditor may inquire your credit history from any one these three agencies. Keeping this in mind, it is suggested to obtain a copy of your personal credit report from each of the three credit bureaus. By doing this, you’ll be able to examine the accuracy of your report and make sure that all faults will be corrected. Hence, when a potential lender asks for for your credit report, you can be confident that they will be getting precise information about your credit.

The Fair Credit Reporting Act entitles all consumers one credit report from each of the three credit bureaus each year. You can get your own copy by visiting Those who believe to have been victimized by fraud or identity theft ; those who have been denied credit; and people who are out of work and are preparing to look for a job within the next 60 days can ask for a copy of their credit report free. On the other hand, you can purchase a copy of your report at any time at $9.00 from each bureau.

Glitches, errors and discrepancies are typical concerns in credit file. The federal law mandates the three major credit bureausto conduct an investigation and take immediate action if an individual disputes the information in his/her credit report. Upon receiving the dispute letter, the credit bureau must get in touch with the lender involved immediately and explain the problem. The investigation must only take a maximum of 30 days and the consumer must be sent an answer within this time period.

If your dispute turns out to be valid, the credit bureau that performed the investigation will inform other bureaus for them to update their own reports accordingly. The bureau must also send the complainant an updated copy of the credit report free of charge. Nonetheless, if the issue has not been solved, the credit agency must still notify the complainant regarding the result of the investigation.

Credit reporting is a serious responsibility and if a bureau fails to carry out its duty, remember that you have the right to file a complaint against that agency through the Federal Trade Commission.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010

One comment

  1. Keep posting stuff like this i really like it

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