The Truth About the Three Credit Reporting Agencies

The three national credit bureaus are Trans Union, Equifax and Experian (formerly known as TRW) specializes in consumer credit reports. These reporting agencies compile all your financial transactions and help you understand your present financial position. 

Read below to find more about the credit reporting agencies:

1. These three agencies are not funded by the government. They are for-profit organizations and owned by the shareholders.
2. The three credit agencies are competitors of each other and never share credit information. Though in special cases they may allow sneak a peek in their valuable data.
3. TransUnion and Equifax use FICO algorithm to calculate the credit scores but Experian uses its own proprietary algorithm to calculate the score. This makes it important to ask for the credit reports from all the three agencies.
4. The credit reporting agencies gather credit information about the payments, receipts and defaults from the creditors like credit card companies, utility agencies, lenders, financial institutions and banks. In return they allow these organizations an easy access to the records of the individuals to access their credit value. This minimizes the risk element involved. Even the insurance companies take a look at the credit report when deciding on the insurance premiums.
5. Each credit report agency is regulated by FCRA or Fair Credit Reporting Act. Except for this Federal law even the State laws might also be applicable.
6. Each reporting agency allows you to get the instant credit report online by filling in a simple request form giving out little yet necessary personal and financial details. You can even send them a mail or phone request for the credit report. Though this process may take more than fifteen to twenty days.
7. These agencies not only act as the information-sharing agencies but also have largely helped in the development of the business culture of US. These companies have standardized the criteria of judging the financial worthies of all the citizens on a single platform.
8. These reporting agencies also offer credit monitoring services to help the individuals maintain good credit score to avoid financial troubles and embarrassments. Though, you might have to pay a monthly fee for this professional assistance.

There are many imposters who might promise to get you a detailed credit report but don’t be carried away. Just stick with these three credit reporting agencies.