What Can Credit Reporting Agencies Do For You?

What Can Credit Reporting Agencies Do For You?

In the United States, there are three major credit reporting agencies: Experian, TransUnion, and Equifax. Most people have some idea as to what these agencies are. They’re the all-powerful guardians of our credit reports, of course. However, what do we know about them beyond that? What do they do at a credit reporting agency, besides having a credit file with your name on it? At Rebound Finance, we want you to be as educated as you can be when it comes to the information about your credit. So, we’re going to delve a little deeper into how exactly these agencies function, why they’re such a big part of your credit history, and how they can offer you the opportunity to improve your personal finances.

Credit Reporting Agencies: What Are They?

Experian, TransUnion, and Equifax are companies that collect all the credit information about one specific person. This means their credit history, how they handle their debt and payments, and how they deal with the loans they’ve been approved for. An agency will put together a credit report for each person, based on information supplied to them by their bank, credit companies, and lenders (click here for more information about credit reports).

Credit reports are tools used to analyze a person’s stability when it comes to their credit. They judge whether or not they’re a high-risk borrower (will they be able to repay their debts). These reports can be viewed by either a lender or credit provider or the consumer.

A credit reporting agency functions as a business and will charge a fee to any customer or credit provider who requests a copy of a credit report. Agencies are controlled by federal and state laws but are not managed by the government.

How Do They Work?

Generally, a credit reporting agency will compile and then assemble your credit information into a credit report. Here’s how it’s done:

Essentially, a credit reporting agency will stockpile all the credit information about their customers, via lenders and creditors. They will then make a credit report, and afterward, give that information back the lenders and creditors, and in doing so, help paint a better picture of the individual that they’re lending credit to.

Services that Credit Reporting Agencies Provide

As was mentioned earlier, credit reporting agencies provide consumers, lenders, and creditors with access to an individual’s credit report, which is a file that contains all the information about their credit history and habits (keep in mind that you are the consumer and can only gain access to your credit report). In addition to these reports, credit agencies also offer:

Is credit monitoring right for you? Check out this article.

What Can A Credit Reporting Agency Do To Help Your Situation

A significant portion of your personal finances and financial stability is determined by your credit history, as well as your credit score. With the various services that credit reporting agencies can give you, including credit reports, credit scores, and credit monitoring, you’ll be able to develop favorable credit. They’ll supply you with the necessary information to help you improve and maintain a solid credit score, solve any financial mistakes you’ve made, and in doing so, help you secure a positive financial future.

If you still need more information on your credit report, consider credit counseling.

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