Credit bureaus assign scores and ratings to your credit history based on how often you pay your bills, what amount you owe, as well as the length of time you have been applying for credit. These scores are used by lenders to predict your ability to pay your bills on-time. They range between 300 and 850. A higher score signifies that you are able to pay your bills on time. Credit bureaus are responsible for analyzing, synthesizing, and presenting this information to lenders and other businesses.
Equifax, Experian, and TransUnion are the 3 main credit bureaus
Credit bureaus keep track of your credit and use it for determining if you are a good risk. There are many credit bureaus out there, but most lenders will use one or two of the major three. Equifax, a credit bureau, was originally established in 1899 for retail credit. The company had offices across North America by 1922 and credit files for many millions of Americans.
Each bureau has a unique business model and offers different credit surveillance services. TransUnion focuses on consumer data. Equifax sells information about consumers to government agencies and retail businesses. Both companies offer credit monitoring for the general population.
They each receive an annual credit report for free
Call the number above or visit the website to get your annual credit report for free. Within 15 days, the report will be emailed to you. It is possible to request the report at different times, up to four months apart. Free credit reports will not provide a comprehensive picture of your credit history at any time. You may want to get a monitoring service, which ranges in price from $40 to over $100 per year.
While all three credit bureaus report information about you, the information may differ between them. Individual creditors don't have to report to all three credit bureaus. Some mortgage companies may report only to one or two of the three bureaus. You should always check all three to make sure there are no discrepancies. This could impact your credit score.
Each one has to pass a background check
Check your credit report to find out if anyone has been convicted. This is a good way to prevent identity theft or fraud. These reports can be used to apply for loans, make utility deposits, and many other purposes. They provide identifying information, a list past and current credit accounts, as well payment history.
Equifax (Experian), TransUnion and Experian are the major credit bureaus that provide credit reports. Each bureau uses a different method to calculate your credit score and may provide slightly different information. It is important to understand what each bureau doesn't do in order to protect yourself and maintain good credit.
Each one has a VantageScore credit score model
FICO scores are still very popular, but VantageScore credit scoring uses an even more complex model. It also measures factors such the age and type credit accounts, along with payment history. VantageScore also tracks trends and measures the credit available. It is available free of charge on websites such as Credit Karma.
VantageScore is a product of three major consumer credit bureaus. It was created in 2006 and has been updated several times since then. It has been updated several times since then. The latest version, VantageScore 3.0 was released in 2013. It quickly became the most used credit scoring tool and was used by over 40,000,000 Americans to help them get their scores. VantageScore 3.0 is still used by many lenders for loan approvals.