A credit reporting agency is a company that collects credit related information. It’s also frequently called a credit bureau.
There are lots of agencies in America. But, the three main types are Equifax, Experian and TransUnion. Equifax ‘s been around the longest and is also the biggest of the three companies. TransUnion could be the youngest bureau and can be the smallest. There are other reliable agencies as well which provide same services. There are agencies which also help you to find the reliable services. For example, many people are now visiting argosrisk.com for reading credit report monitoring reviews in order to get right agency for monitoring their credit reports.
Equifax, Experian and Trans-union assist creditors and lenders to get consumer credit related information. This includes funds, credit backgrounds, credit and bank accounts, and any other financial obligations including liens, court judgments, etc. The data is organized and sold as credit history.
Each business has its own credit score. The report is predicated on each bureau’s record. Equifax and Trans-union use FICO’s scoring formula to compute their results. Thus both possess a version of the FICO credit score. Experian uses its own exclusive scoring formula to make its report.
Each time a consumer applies for credit, lenders can pull-up the applicant’s credit reports to examine their credit history. They’ll also look at the applicant’s credit score to determine his credit worthiness. Good reports and scores will often result in favorable credit terms, including lower interest rates. Bad stories and low scores may provide more difficult lending conditions.
The reports from each institution vary from each other. Collectors and lenders do not always report to all three agencies. Sometimes they pass their information to only one bureau. To get a full look at one’s page, get all three bureau credit reports and compare them. Customers should search for the accuracy of the reporting. Reporting mistakes or unauthorized activities may be harmful to one’s account.