3 Credit Bureaus

The Federal Commission law states that every citizen with a credit card is entitled to get a free online credit report annually from 3 credit bureaus. You just have to place a request for the report in those credits reporting agency websites and a detailed score card will be mailed to you. The three foremost credit bureaus in the United States are Equifax, Experian and TransUnion based in Atlanta, California and Chicago respectively. You may come across several agencies which promise to help you to escape frauds happening in the field by alerting you about any untoward changes in your credit on a daily or weekly basis by referring to credit bureau reports.

There are different names to the scores given by each of the above mentioned agencies. The Equifax calls it Beacon credit score, Experian calls it the Experian/Fair and Isaac Risk Model credit score and the TransUnion calls it as the Empirica. All the 3 credit bureaus have different methods of processing and determining the credit score according to the retrieval and report of information. The three agencies determine the credit score according to their principles.

The Experion report includes your financial behavior and identification information, while the TransUnion report includes identification information, factors suggesting your creditworthiness, your credit history etc. However these do not contain complete detail of medical histories, business accounts or major purchases that were paid in full. Till recent time the 3 credit bureaus followed their set rules of accessing a consumer’s creditworthiness. But, now they have jointly agreed upon a common method called the Vantage Score System. This serves as a standardized formula for determining and ranking consumers based on their credit score. The score thus provided is highly predictive and consistent. In addition to preventing the identity theft, the credit reporting systems can find a great relief by this new method as it also reduces its service efforts.

A report form the 3 credit bureaus have several advantages to brag. They help you in establishing a proper business and also aid your important decisions. Using the credit report you can keep a track of its important elements for outdated information and thefts. If the report suggests a low score then you can act immediately by paying the balance amounts which would not only enhance your credit score but would also help you to get rid of the nerve pinching job of getting a loan. Having a clean credit history you can opt for any sort of loan like home loan, personnel loan or an auto loan.

The possibility of you getting a loan will solely depend upon the relationship you have established with the 3 credit bureaus by timely or untimely payment of your bills or by not paying them at all. The bureaus keep the credit information handy for new lenders or interested parties. Any lender would chose to go through your credit history before lending you any money and the annual credit report with a high score can do wonders in convincing him to lend a loan. So, go ahead get your credit score card!!!