Credit Report Agencies
Credit information is compiled and maintained by three Credit Reporting Agencies
(CRAs), also
called Consumer Reporting Agencies: Equifax, Experian, and
Trans Union.
Each agency records your credit history by linking up with lenders
both large and small and tracking your payment history for seven
year increments. The data is then shared with lenders such as
banks, credit card companies, landlords, etc. Lenders pay these
companies every time they request your credit report. This is how the 3
Credit Reporting Agencies make their money. The potential conflict
of interest is obvious! The more times lenders request credit
reports, the more money a Credit Reporting Agency makes. Is it not in
their best interest to keep these companies - their consumers - coming back?
Learn about credit
repair services and how professional experience with CRAs can help.
Dealing with a CRA can be difficult, time consuming and
immensely frustrating. Although governments at all levels have
acknowledged that there is an inherent problem in how CRAs operate,
little has been done to address these shortfalls. Understanding how
they work, who to contact, their procedures, and the rules with which
they must comply as defined in the Fair Credit Reporting Act is critical to achieving positive results. That's
where professional
credit repair services
come in.
What is in a Credit Report?
There are many details listed in your credit report. Some examples
include bill payment history, slow pays, bankruptcies, repos,
judgments, tax liens, charge offs, student loans, and foreclosures.
The details contained in a credit report are then fed through
complex formulas called credit scoring models that provide a final
number called a credit score. Your credit score
greatly influences your ability to access credit, and the amount you
will pay for the privilege of borrowing.
All of this may sound perfectly reasonable, and indeed it is fair
that a person or company can assess a person's risk prior to lending an
individual money. The problem lies in the fact that far too often
the information on credit reports is inaccurate, misleading, or
downright false. A Credit Report Bureau is not responsible for verifying the
accuracy of the information it provides. If you find negative
information on your report, it's YOUR responsibility to prove that
it's wrong. Until you do so, the information remains.
Although the various levels of governments have promised to address
this problem, little has been done to ensure that private citizens
are protected. For this reason, reviewing your credit report on a
regular basis is critical, and fixing it when it is inaccurate is
essential! The single, most important move the government has made
to assist individuals is demanding that every citizen have access to
annual, free credit reports. Learn how to access your
free annual credit reports to
ensure that the credit reporting about you is accurate and up to
date.
Read more about what information is contained in your
credit report.
Consumer reporting agencies hold enormous power over every
individual's financial well being. If one or all of the CRAs are providing inaccurate or out of date financial
information about you - you will be paying the price for this
misinformation, as it greatly impacts not only your ability to
access credit, but what you will pay for that credit.
Credit report agencies are obligated to follow the laws and
regulations set forth in the
Fair Credit Reporting Act (FCRA).
This Act is among the most valuable tools used by credit repair
professionals.
Learn more about professional
credit repair services.
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Credit Repair Organizations Act
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