Credit Bureaus

Credit bureaus are organizations that tell what bills we have and how we have paid them recently as well as in the past. Many people do not realize that their banks, credit card companies, department stores and other creditors track their purchasing and payment habits and then report them to a credit-reporting agency known as a credit bureau. With our permission, banks and lending institutions get a copy of our credit report from credit reporting agencies and use it to determine our creditworthiness. The credit reporting bureaus also collect such information as job history and home ownership.

It is important that you know what is on your credit report as your credit report can affect your financial future. It becomes even more important if you are considering buying a house or any other major purchase that will require a loan. There are places where you can get a free credit bureau report from one of the credit report agencies. By law, you are entitled by law to one free copy of your credit report from each of these three credit bureaus once per year. If you order more copies then each report will cost no more than around $10 or less.

People are recommended to check their credit report with each of the 3 major credit bureaus: Equifax, Trans Union, and Experian. Experian Credit Bureau and Transunion Credit Bureau both offer you a free copy of your credit report along with your credit scores. Which credit bureau you use is a matter of personal choice, although most lenders use the Trans Union Credit Bureau. In most cases, the lenders do not use all 3 bureaus for a credit report. In addition, if you have been turned down for credit within the last 60 days because of something on your credit report from any of the 3 credit report agencies, you can obtain a copy of your report free of charge. Lenders are required to let you know of this right after denying you credit. They will also tell you how to contact the credit bureau.

You can go to the homepage of each of the 3 bureaus for an online credit report. While reviewing your report, make sure that all the loans and credit accounts really belong to you. If any loan or line of credit that you have closed is still listed as open then contact the credit bureaus to have the discrepancy corrected. Also, make sure that all information is correct. If any changes need to be made, the credit bureau can provide you with a form to be filled out. If you are familiar with the lending institution that made the error, you can contact them directly as well.