Credit reporting agencies are those agencies which have the job of reporting your credit history. These agencies keep a track of all your financial transactions and on the basis of your credit history, give you a credit score. These credit reports are used to judge how much credit worthiness we are. These credit reporting agencies collect this data and sell it to various credit giving agencies, banks and financial institutions. Whenever we approach any credit agency to give us a loan or credit, they will look on our credit reports to judge whether we deserve the credit or not.

There are three agencies which have the job to summarize our financial records and credit history and keep it on record. We can use the report from these three credit reporting agencies to bring our credit reports in order. This 3 in 1 credit report can help you find the discrepancies and mistakes in your credit score, and correct the inaccuracies by writing an application to these agencies. The three credit reporting agencies are Trans Union, Experian and Equifax. The most popular credit score is the FICO score which is based on the report called Fair Isaac report. In addition, Equifax has a report called Beacon credit Score and the third kind of score is the Empirica score.

These credit reporting agencies prepares these 3 in 1 credit reports based on our payment history and are used by various financial organizations to judge the risk associated with giving us the loan. It translates into our assumed capacity to pay back the loan we have applied for. These financial organization and banks are profit making entities with profit being their main motive, so it is very important to them that their given loan does not result in bad debt which can occur when the borrower doesn’t have the capacity to return the borrowed loan or credit.

Having a good credit report can be very beneficial to you. If your credit score is good, you can easily get loan from any institution at lower rates and proper credit limits. There are various things which form the part of your credit reports such as your name, address, your banks, your payment history, the history of your loans, credit information etc.  If there is any mistake or inconsistency in this data, it can dramatically lower your credit score and cast your credit history in bad light. To keep your FICO score healthy, it is important that you do not borrow very big loans, and pay your dues in time.

According to the US law, we can get to see our credit reports from any the three major organizations, and they will not charge any money for seeing our credit reports for one time annually. So, we can see our 3 in 1 annual credit report once a year for free, and it is wise to use this opportunity to keep track of our financial worthiness in the market. But unfortunately, these credit reports don’t contain our credit score. For seeing our credit score, we would have to pay some extra charge to these organizations. But there are some websites which allow you to see your credit score online for free. So, keep monitoring your credit reports and it will pay when you are really in the need of credit.

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