In America, your credit history is serious business. You must have an excellent credit history to do everything from renting an apartment or condo to obtaining a new job to making an application for more credit. Whatever the purpose for your credit history requirements, you ought to know a bit about the credit bureaus.
There are three significant credit bureaus in America: Equifax, TransUnion and Experian. Each one compiles its own credit file and report on you and determines a credit rating. When a third-party, a potential company, for example, runs a credit examine on you, he asks the credit bureau to produce your file or score. Likewise, a business like Visa will report your financial history to the credit bureaus, who then add it to your file, regardless of whether it is beneficial or negative.
Unfortunately, some things get ignored or are entered mistakenly on the credit bureau’s end. This is why it’s very important to always examine all three of your credit reports– you wouldn’t wish to only examine your Equifax report and then discover that the Experian report your landlord is pulling shows numerous errors that drop your credit history into un-rentable levels.
Equifax provides third-parties, including lenders, access to your FICO score or VantageScore. When you request your credit history though, they supply a different number, one based on their own exclusive algorithms.
TransUnion provides FICO and VantageScore, but likewise provides scores that are product-specific. For instance, it might provide one score to lenders pulling credit for a charge card application, but another to companies or proprietors.
Experian is a bit various. Although they provide FICO scores, VantageScore is only readily available to lenders upon demand.
Because the three credit bureaus are so various and typically have different financial information about you, it is essential that you always get your complimentary credit history from each bureau a minimum of when a year. In addition, make certain to ask for a copy of your complimentary credit report to validate that the information each of the three bureaus has is updated and precise.