Consumer Credit Reporting Agencies

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Credit reporting agencies
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Overview of Consumer Credit Reporting Agencies

Consumer credit reporting agencies are entities that collect and disseminate information about consumers to be used for credit evaluation and certain other purposes. Credit bureaus hold a consumer’s credit report in their databases. Consumer credit reporting agencies have several responsibilities under the Fair Credit Reporting Act (FCRA), including the following:

  • Provide a consumer with the personal information contained in the agency’s files
  • Take steps to verify the accuracy of information disputed by a consumer.
  • Under the Fair and Accurate Credit Transactions Act (FACTA), consumers can receive one free credit report a year
  • The free report can be requested by telephone, mail, or through the government-authorized website annualcreditreport.com

If negative information is removed due to a consumer’s dispute, it may not be reinserted without notifying the consumer within five days in writing.

Consumer Credit Reporting Agencies may not retain negative information, such as late payments, bankruptcies, tax liens, or judgments, for an excessive period. The FCRA describes how long negative information may stay on a consumer’s credit report – typically seven years from the delinquency date. The exceptions to this rule are bankruptcies, which can remain for ten years, and tax liens, which can remain for seven years from when they are paid.

Primary Credit Reporting Agencies

There are three primary credit reporting agencies:

Equifax

Equifax is one of the three major credit reporting agencies in the United States, alongside Experian and TransUnion. It is a global data, analytics, and technology company headquartered in Atlanta, Georgia. Established in 1899, Equifax has a long history in consumer credit reporting.

The primary function of Equifax, like other credit reporting agencies, is to collect and maintain vast amounts of financial data on individuals and businesses. This data includes information on credit accounts, loans, mortgages, credit card balances, and payment histories. Equifax compiles this information into credit reports, which are then used by lenders, creditors, and other financial institutions to assess the creditworthiness of individuals and make informed lending decisions.

Equifax also provides various other services, including credit monitoring, identity theft protection, fraud detection, and marketing solutions based on consumer data.

In addition to its presence in the United States, Equifax operates in several other countries and serves a global clientele. It is considered a major player in the credit reporting industry. It plays a crucial role in the financial ecosystem by facilitating responsible lending practices and helping consumers manage their credit profiles.

However, it’s worth noting that Equifax, like other credit reporting agencies, has faced controversies and security breaches. In 2017, it experienced a significant data breach that exposed the personal information of millions of individuals. This incident raised concerns about data security and led to increased scrutiny of the industry as a whole.

Visit the Equifax website for more information.

Experian

Experian is one of the three major credit reporting agencies in the United States, along with Equifax and TransUnion. It is a multinational consumer credit reporting company headquartered in Dublin, Ireland, and Costa Mesa, California, USA. Established in 1996, Experian has become a leading consumer credit reporting and financial services player.

Experian’s primary function is to gather and maintain vast financial data on individuals and businesses. This data includes information on credit accounts, loans, mortgages, credit card balances, and payment histories. Experian compiles this information into credit reports, which are then used by lenders, creditors, and other financial institutions to assess the creditworthiness of individuals and make informed lending decisions.

In addition to credit reporting, Experian offers a wide range of other services, including credit monitoring, identity theft protection, fraud detection, and marketing solutions based on consumer data. It also provides analytical tools and services to help businesses make data-driven decisions and manage risk.

Experian operates globally and provides its services in numerous countries around the world. It is considered a major player in the credit reporting industry. It plays a crucial role in the financial ecosystem by facilitating responsible lending practices and helping consumers manage their credit profiles.

For more information, visit the Experian website.

TransUnion

TransUnion is one of the three major credit reporting agencies in the United States, alongside Equifax and Experian. It is a multinational consumer credit reporting company headquartered in Chicago, Illinois. Founded in 1968, TransUnion has established itself as a prominent credit reporting and information management player.

TransUnion’s primary function is to collect and maintain extensive financial data on individuals and businesses. This data encompasses information on credit accounts, loans, mortgages, credit card balances, and payment histories. TransUnion compiles this information into credit reports, which are then utilized by lenders, creditors, and other financial institutions to evaluate individuals’ creditworthiness.

In addition to credit reporting, TransUnion offers various other services, including credit monitoring, identity theft protection, fraud detection, and marketing solutions based on consumer data. It also provides analytical tools and services to assist businesses in making data-driven decisions and managing risk.

Visit Trans Union for more information.

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What the credit bureaus don’t tell you can cost you thousands. Jason Rich unearths these dirty little secrets in this tell-all expose’ aimed at immediately improving your credit report. Whether you have credit problems, are trying to establish credit or want to improve your credit score, this previously undisclosed advice can help you save hundreds, perhaps thousands of dollars every month.

Credit Rating Agencies

A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations. The issuers are usually companies, cities, non-profit organizations, or governments. A credit rating measures an individual or a business’s creditworthiness and ability to repay loans. It may affect the interest rate and dollar amount of loans they apply for.

A company that issues credit scores for individual creditworthiness is generally called a credit bureau or consumer credit reporting agency.

Information Providers

AAA Credit Screening Services – Resource for tenant credit reports, tenant screening, employment screening, driving records, criminal records, background checks, and business credit reports.

CreditLink Corporation – Established to meet the needs of landlords who demanded more information for their tenant screening dollars. Find tenant histories, evictions, and tenants who “skip out” on their rental obligations. It also includes a nationwide bad check search.

Creditreport.com – Creditreport.com, provided by Experian, is the official site authorized by the three national bureaus to provide the public with access to any or all of their credit reports 24 hours a day and seven days a week, 365 days a year.

Landlord Connection – Database of eviction records from all 50 States.

MyFico.com – myFICO® is the consumer division of Fair Isaac, the company that invented the FICO® credit risk score that lenders use. Fair Isaac sparked a revolution by pioneering credit risk scoring for the financial services industry. This new approach to lending enabled financial institutions to improve their business performance and expand consumers’ access to credit. Today Fair Isaac’s FICO® score is widely recognized as the industry standard for lenders. myFICO® offers informative credit information products that help people understand actions they can take to achieve and protect their overall financial health.

Optoutprescreen.com – Under the FCRA, Consumer Credit Reporting Companies are permitted to include your name on lists used by creditors or insurers to make firm offers not initiated by you. The FCRA also provides you the right to “Opt-Out,” which prevents consumer agencies from providing your credit file information.  Through this website, you may request to:

  • Opt-Out from receiving Firm Offers for Five Years
  • Opt-Out from receiving Firm Offers permanently
  • Opt-In and be eligible to receive Firm Offers

Tenant Screening Center – Provides history reports, tenant screening, criminal history, and other verification services.

Questions and Comments

If you have questions about consumer credit reporting agencies, please leave a message below. See also our list of background check providers.

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