Credit bureaus gather information about your creditworthiness
What is a credit bureau?
Credit bureaus, also known as “credit reporting agencies” (CRAs), are companies that collect and maintain credit information on consumers. The main credit bureaus in the United States are Equifax, Experian, and TransUnion. Each is a publicly traded company that operates for profit. While there are smaller agencies, creditors and lenders are most likely to check your credit using one of the major credit bureaus.
How are credit bureaus regulated?
The federal government has legislation – the Fair Credit Reporting Act (FCRA) – that regulates how these bureaus operate and what they must and must not do. They are monitored by the Federal Trade Commission (FTC) because they handle sensitive information for millions of people.
Why might your information and scores differ between credit bureaus?
Credit bureaus often have business relationships with the same banks and credit card issuers as well as other companies you may have accounts with, but they are separate entities. Your account history may appear on one of your credit reports from these agencies due to their connections, but credit agencies do not share your account information with each other. Freezing credit and fraud alerts are exceptions to this rule.
How to view your three credit reports
You have the right to see your credit reports and get a free copy from each of the major credit bureaus once a year. Visit AnnualCreditReport.com to request it, or call 877-322-8228. You can also obtain a free copy of your report if you were denied credit, but you must request it within 60 days of the denial date.
How to dispute information with credit reporting agencies
You may want to contact the credit bureau directly to dispute any inaccurate information you found on your report. A study by the Federal Trade Commission found that one in four consumers has an error on their credit reports that affects their credit scores. One in five consumers has an error on at least one of their three credit reports that was later corrected by the credit reporting agency after a dispute.
Fraud alerts and credit freezes
You can also reach out to any of the credit reporting agencies to place a fraud alert or a credit freeze on your credit report if you have reason to believe you are a victim of identity theft. A credit freeze prohibits access to your report, so you will not be able to apply for credit if you set one up. This service is often free, and you can lift the freeze at any time.
Frequently Asked Questions
When do credit card companies report to credit reporting agencies?
Not all credit card companies have the same reporting schedule, but if they report to one of the major credit reporting agencies, you can expect them to report at least monthly. Credit reporting agencies prefer to receive information on the billing cycle date, but you can ask your credit card company for more information about when they report exactly.
When does a credit reporting agency update your credit scores?
Credit reporting agencies update your credit scores whenever they receive new information. If there’s a change not reflected in your credit scores (like paying off a credit card), it’s likely that the company hasn’t reported that information to the credit reporting agency yet. If there’s inaccurate or outdated information in your credit report, you have the right to dispute it.
Source:
https://www.thebalancemoney.com/who-are-the-three-major-credit-bureaus-960416
Leave a Reply