Credit Bureaus

By | March 27, 2006

As previously mentioned, there are 3 major credit bureaus which are Experian, Trans Union and Equifax. All three credit bureaus are actually companies that are publicly traded on the stock market. This means you can actually own shared in them if you wish. They keep a record of who has give you credit and the details within and sell consumer credit history reports to those interested in order to earn an income. They also obtain information from any public records you may have such as liens or bankruptcies or other financial judgments etc.
When you apply for any credit, the creditor may only check with one of the three mentioned. If they end up finding some information that is negative they will probably not bother looking up your information from the other two. And thus you will be labeled by that one report. This also usually proves true for the creditors themselves. Unless they subscribe to all three credit bureaus, they will probably only report to one of them if you are delinquent. It is this process that causes the different scores from the different bureaus and why you should not merely check your report from one of the three mentioned but from all three.
There are a few facts about these companies such as there are sometimes mistakes on your report. Sometimes these points in the report are in your favor and sometimes they may be unnecessarily harming you. All points on your report must be proven. If the bureau cannot prove that a point on your report, than legally, they must remove it usually within 30 days. The older the item on your report often means the harder it is to prove. You can challenge any point when ever you want and they have to investigate it. Sometimes your creditors may not verify any fact in time or the bureau is too busy to handle it so the item ends up being deleted or corrected.

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