Introduction

Credit reports and credit scores influence our lives in many ways. Your history of credit management affects the cost of loans, your ability to rent or buy a home, the insurance rates you are offered, and even your future employment opportunities. By understanding the world of credit reports, you can create a positive credit standing and good scores so you can achieve your goals quickly and at the least expense. This program will cover:

• Credit Reporting Agencies
• What is On Your Credit Report
• Understanding Credit Scores
• Improving Your Score and Credit Standing: How to establish and reestablish credit
• Consumer Rights and Responsibilities

Chapter 1: Credit Reporting Agencies

It is a credit reporting agency’s role to collect credit and financial information about you and compile it into reports. Lenders and other companies buy these reports and use them to accurately and fairly assess their risk in doing business with you.

Keep in mind that while it is the credit reporting agency’s responsibility to report only accurate and timely information, it is not their role to approve or deny you credit or other opportunities.

Consumer Credit Reports
There are three major credit reporting agencies, commonly called credit bureaus, in the United States: Experian, TransUnion, and Equifax.

Credit bureaus gather most of the information about you from your creditors: credit card companies, banks, credit unions, mortgage lenders, and retail establishments. These companies typically report account activity to the bureaus (usually to all, but some to just one or two) on a monthly basis. Credit bureaus also acquire information about you by searching court records for lawsuits, judgments, and bankruptcy filings.

All of the credit and public record data is compiled along with your identification information and provided to creditors, insurance companies, employers, landlords, and anyone else who has a lawful use for the information, at their request.

Because so much information is exchanged, errors do occur, so it is important to check each report for accuracy at least annually. You may receive a free copy of your credit reports once a year through Annual Credit Report Request Service. The three credit bureaus have established this central website, telephone number, and mailing address to order your reports. If you request the reports online, you should be able to view them immediately. You may also order them directly from the credit bureaus for a fee.