A credit bureau is an organization that collects, compiles and stores financial data from consumers like you and me. Then, they sell those records, known as credit reports, to creditors and other financial institutions.
There are three main nationwide credit bureaus or credit reporting agencies in the U.S.: Equifax, Experian, and TransUnion. Along with them, there are other more specific agencies dedicated to:
- employment screening,
- tenant screening,
- check and bank screening,
- personal property insurance,
- low income and subprime,
- supplementary reports,
A lender could appeal to these other agencies to get a more detailed profile of us and seize the risk of having us as their clients. It would depend on what kind of transaction we are trying to complete.
One of the main issues reviewed but lenders when they ask for your credit report, is the credit score. There are two of them: FICO scores, created by the Fair Isaac Corporation, and VantageScore, created by Equifax, Experian, and TransUnion.
A great power
Even though the three primary financial data collectors don’t make lending decisions, the operation’s outcome primarily relies on the information reported about us. The overview of this information is called creditworthiness.
Even though companies are the natural clients of these agencies, we can also check our report. The Fair Credit Reporting Act guarantees this right. One of these prerogatives establishes that we could get one free report every 12 months. Also, exist the opportunity to purchase a more detailed file.
Together we grow
In conclusion, your credit report sets the way lenders will treat you every time you look for their services. For that, our mission is meticulously going through every file that the reports credit agencies have on you.
Once we have reviewed and understood how you were qualified, we will present you with the best course of action to achieve the appropriate credit score to materialize your dreams. That is our mission!