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Written by Gary Cole
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Who Is The Credit Report Company?A credit report company is someone watching your every credit move. These companies work with you, with your creditors and on their own to manage credit throughout the country from the millions of borrowers out there. There are several credit reporting agencies, as they are more commonly known as.
Three are considered the most important as they are the largest and are the companies most credit card, personal loan, and mortgage lenders use to determine if you will qualify for credit. These companies include Experian, Equifax and Transunion. Each company is a separate, but equally important to your credit situation.
What Do These Companies Do? There are several things that a credit reporting company will do for you. First, the job of these companies is to gather and report information. They do not make credit decisions for you or the potential lender. They also do not share your information with just anyone. It is illegal for a company or person to request this information unless it is specifically required for business purposes. These companies are also not one sided. They do work with you to insure that all information reported on your credit report is authentic and accurate. They will work with you to correct any information that is not. For this reason, do not look at these agencies as the problem.
Whenever your Social Security number is used to request credit, the companies considering loaning to you will use one or more of these reporting systems to gather information about you. Once you obtain some credit, from any lender, they will regularly report your credit activities to the credit reporting companies. They do this for every borrower they have on a monthly basis. By reporting it back to the credit reporting companies, they are able to see what your true credit status is. This way, any company that is lending to you can access your credit history report and determine if they should lend money to you. There is a great deal of information shared with credit card lenders through your credit report. These companies gather this information from all of your lenders. They record the information based on the use of your social security number. Since most credit card lenders (or other credit lenders in general) will benefit from having access to this information, they all willingly report to the credit report companies. That way, they can access the information for potential borrowers and even your credit report to adjust the amount they can and should lend to you. |
