Most people do not know what information credit bureaus have about them in their credit reports. This can be dangerous because you could be turned down for a credit card, a loan or even a job if you are unaware of what a particular credit bureau says about you. It is your responsibility to take your credit into your own hands and learn the most you can about your credit report so you will be prepared for whatever may come. We are here to help you with some of the basics of a credit bureau, credit reports and why you should be sure to know what yours says about you.
The Credit Bureaus
There is more than one credit bureau in America that carries information about you. The three major credit bureaus, or credit reporting agencies, are Equifax, Experian, and TransUnion. Each credit bureau gathers credit information about you, puts it together in a credit report and sells it to creditors, employers, insurers, and others as regulated under the Fair Credit Reporting Act.
Each credit bureau does not communicate with the others, so more than one credit bureau may have a credit report on you, and each report from a different credit bureau might be slightly different.
What They Know
Each credit bureau can collect quite a bit of information about you. The credit bureaus will know things like the basics: your name, birth date, Social Security number, employment history, income, previous address, and whether or not you are a home owner.
Each credit bureau will also collect information on your payment habits, such as whether you have let accounts go delinquent, how often you pay on time and how much credit you have received in the past.
If you have declared bankruptcy, the credit bureau will keep this information on your record, too. Bankruptcy can stay on your record for anywhere from seven to ten years. Other public record information, such as foreclosures and tax liens, can also appear on your credit report provided by a credit bureau.
The credit bureau will also keep record of any requests or inquiries for your credit report. If creditors have requested your credit history, it will show for one year on your report; if businesses have requested your credit history for employment, the inquiry will show for two years on your report.
What You Need to Know
Because each credit bureau carries a unique credit report on you, you are advised to know what is on all three reports from each credit bureau. You need to know all the information running around about you, available for creditors, employers, insurers, and others to access. You also ought to know who has been looking at your report.
It is your right to know everything a credit bureau has in your credit report and to verify the accuracy of it, especially if you are getting ready to apply for credit, have co-signed on a loan, have gotten divorced, or simply haven’t seen your report in a while.
A credit bureau can charge you a fee for a copy of your credit report, but if you have been denied credit or turned down for a job for credit-related reasons within the last 60 days, you are entitled to a free credit report according to the Fair Credit Reporting Act.
By D. Blair Thompson