23 July 2008
Credit Reporting Agencies
Posted by Raymond Lam under: Business .
Credit reporting agencies maintain electronic records of your credit activities. Today, there are three major national credit bureaus: Equifax, Experian and Trans Union. If you are planning on applying for a loan or credit anytime in the near future, it’s a good idea to obtain a copy of your credit report.
For a fee, you can request a copy of your credit report at anytime by contacting one or more of the major credit agencies. Or you can receive a free copy of your credit report through one of the many credit companies available on the Internet. Our favorite source of information on credit reporting agencies on the Web is www.credit-report-credit-score.com
One of the major duties of credit reporting agencies is to compile reports from creditors in order to establish a credit history for the individuals that they receive the reports on. Each time you make a payment on time, there is a good chance that a positive report will be sent to at least one (and sometimes all) of the credit reporting agencies. When you miss payments, a negative report might be sent.
The credit reporting agencies compile these reports in the credit file that holds your past reports, and the reports in the file can stay there for years before they finally expire. It is from these files that credit reporting agencies generate your credit score and create a credit report on you when it is requested.
Alongside of the compiling of reports from creditors, the credit reporting agencies are also responsible for generating your credit score so that potential lenders and creditors can try and determine how much of a credit risk you may be. Your credit score has the potential to change with each positive or negative report that is received and placed into your file… positive reports can improve your score, while negative reports bring it down.