A Credit Reporting Agency - Partners In Gathering Information

What is this mysterious credit reporting agency that collects data and compiles reports on you? If you're like most Americans, somewhere a credit reporting agency keeps your financial history. The agencies gather information on consumers to share with lenders so they can better estimate their risk in giving you money.

What a credit agency does is create a file on you. There is a lot of information in this file, and it's for sale to almost anyone who has a good reason to see it. Your file contains information regarding: your name, address, Social Security number, payment history, type of accounts you have and if you have ever declared bankruptcy or been arrested.

In the credit reporting agency world, there are 3 big names: Equifax, Experian and TransUnion. They do not make decisions when it comes to obtaining a loan. All they do is provide the information, which lenders use as a tool to decide whether to offer you credit.

The agencies play an important part in the information gathering process of any credit group. Every credit reporting agency, or credit bureau, sells their information to credit-grantors such as banks, retailers and credit card companies.

The agencies don't cooperate or share their closely guarded information. Each agency will have slightly different information on the same person. Credit grantors usually look at all 3 reports to be sure they have a full picture. They pay the credit reporting agency to gain access to their information about you. Companies such as car dealerships, banks and department stores purchase this information. Prospective employers, landlords or insurance underwriters may also request information from your credit file.