The Major Credit Bureaus and What They Mean To Your Credit Report

Credit bureaus have forever changed the way we borrow money. Americans used to go to their neighborhood bank where the loan officer greeted them by name, maybe lived just down the street. It was a very personal way of lending, but it no longer exists. Banks are too big now to personally know all their customers. Today the major credit bureaus have stepped into the void by offering your credentials (in the form of a credit history) direct to lenders.

What Credit Bureaus Do
There are 3 major credit reporting agencies, or credit bureaus: Experian, Equifax and TransUnion. They collect credit information on individuals, and then sell this information to their clients, primarily lending institutions. The information in these credit bureau reports helps the institution decide whether or not the individual is able and likely to make the payments on the loan, based on their past credit experience.

Most lending institutions actively cooperate with the credit report bureaus, by giving them the very information that is later resold. In effect, the credit bureaus work as an information exchange center for their customers.

Double Check Your Report
Bad credit can mean higher interest payments, inability to obtain a loan, a credit card or to buy a house. It may even prevent you from obtaining the job you want because some employers check credit history. Thus, it's a good idea for you to check your credit history every year because mistakes happen. Ordering your credit report online is the first step towards setting your credit records straight.

You are entitled to view your credit report every year for free from each of the 3 leading credit bureaus of the country. They are Experian, Equifax, and Trans Union.

If you find a problem after viewing your report, contact the bureau. Here are the toll-free telephone numbers to call for the three major credit bureaus:

Equifax, 1-800-685-1111

Experian, 1-888-397-3742

TransUnion, 1-800-888-4213

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