Are you wondering as to what are the three credit bureaus? This article will help you to know about them in detail. A credit report is truly essential because this is that one ultimate thing which helps in acquiring you loans with reduced interest rates.
What are the three credit bureaus?
The three credit reporting agencies are none other than the following:
These three credit reporting bureaus help you in maintaining your entire credit history. If you do not hold any credit, then a report will not exist since no credit is been established. If you have a credit established, then it tells you as to what is there on the report. Every year, you get a copy of your credit report free. If you notice something wrong on your report, maybe error, then it is your responsibility to report them to respective bureau immediately. This way not only your errors get rectified but also you will be improving your credit score as well. No doubt, that swindles happen every day or the other. Therefore, apart from these errors, if you find something suspicious or perhaps fraud, then you need to contact fraud agencies of any of three credit bureaus in order to place fraud alert at the credit file.
Generally, credit grantors from credit bureaus buy credit reports. These credit grantors are none other than financial companies, retailers and banks. Moreover, credit bureaus sell these credit reports to some of the potential property owners, insurance companies and employers. Credit grantors and businesses use these credit reports for determining creditworthiness. There are generally 3 major agencies who are involved in the businesses of distributing as well as collecting credit histories of all Americans. If you are one of the average American, then it is guaranteed that these three agencies will have your credit history. The credit report or credit history version entirely differs from one credit agency to the other. Therefore, TransUnion, Equifax and Experian are competitors. This literally means that every agency has unique version of credit history. This is the reason as to why it is essential to obtain the credit reports from all the three credit agencies. You get these reports in order to know if there are any errors in the files. TransUnion serves wide variety of industries that includes banking services, financial services, real estate service, mortgage services, collection agencies, direct marketers, energy companies, communication companies, retailers and insurance providers. Experian is a company that collects all the information associated with you as well as credit history.
As said earlier, you can request for credit reports (free) once in a year. This goes for all the three credit bureaus. A credit-score is the number that tells you as to how well are you managing your bills and other expenses. This credit score has to be high. The higher it is, the better it is for you. You can get loans at a reduced interest rate. In fact, most of the financial sectors like banks and other institutions will be ready to give you loans. At first, it might seem as if the credit score you hold is the same for all the three credit bureau agencies. However, the fact is that the 3 scores are entirely different. Credit scores can be improved by just holding the right credit. You need to be responsible in paying all your bills on time. You must never exceed the due date. Never ever do the mistake of owning too many debts as this has a huge impact on your credit score.