Credit Reporting Agencies
If you have been turned down for credit recently, you may have received a
letter stating why. The letter mentioned their decision was based on what
information one credit bureau had on you. You notice that the credit
reporting bureau was TransUnion. At this point you wonder what
TransUnion has to do with your credit.
Believe it or not credit reporting agencies have a major impact on your
credit. How is this so? They hold the information that is sent to them by
creditors. Any time you open an account somewhere, that information is
sent to credit reporting agencies. Even if you buy a house or move into an
apartment, that information is sent to one or more credit reporting agencies.
Credit reporting agencies are companies that collect and reporting credit
information. That is all they do. Lenders always refer to such agencies
because of what the agencies do. Lenders know that credit reporting
agencies hold all credit information for anyone who has credit of some kind.
Credit reporting agencies do not make decisions about your credit. They do
not get involved in the decision making process. All they do is provide a
report of your credit history. In this report, they list your borrowing activity,
types of credit you use, the limits you have on your credit cards, how many
accounts are open, and how your payment history looks.
The people who request your credit report include creditors, employers,
insurance agencies, government agencies, and other business entities.
Credit reporting agencies contain files of well over a million people. If the
person has a credit history, the credit reporting agencies have that person
listed on file. When a borrower decides to take out a loan, the creditor
contacts a credit reporting agency, requesting a credit report on the
borrower. The creditor buys the report. This report will lead the creditor to
his or her final decision regarding whether to approve the loan or not.
You can easily find out what is on your credit report. Because of the Fair
and Accurate Credit Transaction Act of 2003, you have the right to get your
credit report from all three credit reporting agencies including Equifax,
TransUnion, and Equifax. Why do you need one from each? Because each
credit reporting agency does not have the same information.
If you are interested in learning more about who can obtain your credit
report go to http://www.spendonlife.com/guide/who-can-access-your-credit-
report. By having this knowledge, it will help you determine if your credit
report is being seen by someone who shouldn’t be looking at it.