What Is a Credit Bureau?

A credit bureau, also called a credit-reporting agency, keeps track of a person’s financial history. They do this by getting monthly copies of financial records from the individual or the business that they report to. The records are then processed and reported to the person who is the creditor, or the company that needs to get more information about a person’s credit rating. Here is some information about what a credit bureau is and why you need to know what it can do for you.

What is a credit bureau? A credit bureau, also called a credit-reporting agency, keeps track of a person’s financial information for you. In other words, they keep a record of every loan, line of credit, installment, credit purchase and the amount of payments (if any) that they have made.

What does this all mean to you? It means that anyone who has an outstanding balance on their credit cards, a mortgage, auto loans or student loans will need to alert the credit bureaus about that information. The credit bureaus will then investigate the information and inform the person about their poor credit rating. They will then notify the person about the information in the form of a letter or via electronic means (usually through the mail). The next time a lender is reviewing your loan application or credit check, they will be able to see the negative information on your report.

How do the credit bureaus get these reports? They access the information that you provide to them through the three major credit bureaus: Trans Union, Equifax and Experian. The credit reporting companies then compile this information and report it to the credit agencies. There is a process involved, but once you are approved of a loan, the process should not take very long.

What is the importance of having a good credit report? A good credit report will give you better interest rates on loans and other types of lending. When you apply for a loan and are turned down, chances are high that the lender will deny your loan application because of your bad credit history. A loan that is guaranteed by some type of collateral will almost always be given to people with good credit.

What is the importance of how the three credit bureaus to get the information on your credit report? The credit bureaus are required by law to give the client copies of their credit reports. They also are required to tell the client of any changes in their credit report. However, they have little influence over the accuracy of those reports. Many times the credit reports contain errors, which the credit bureaus have no control over.

What is a credit repair company and why should I use one? A credit repair company can help you improve your credit rating. The credit bureaus do not provide this service. If you want to obtain the services of a reputable professional, you should research the many companies available online. This will ensure that you find one that is trustworthy and has a proven record of success.

What is a credit repair not? The credit bureaus do not provide insurance for you if you have filed bankruptcy. The best way to improve your credit is to purchase a home and then begin a debt management program.

What is a copy of my credit report and why is it so important? Credit reports are used by all major credit bureaus including Experian, TransUnion, Equifax and the three major credit reporting agencies. If you don’t have a copy of your credit report, there are steps you can take to request one. You must write to each credit bureau and ask for a copy of your report.

What is a credit repair not? A collection agency is not allowed to make purchases on your behalf without your permission. Neither are telemarketers or junk mailers. If you are looking to obtain a credit card, you must contact the card issuer directly and they will provide you with the authorized account holder.

What is a credit repair not? You cannot use a credit repair service or lawyer to repair your credit. The terms are quite different and only a licensed attorney can help you get set up on good standing. The credit bureaus need documentation from you to help them build your credit, including copies of tax returns, bank statements and a current credit statement. This information will assist the bureaus in building your credit record.