Credit Bureaus and Credit Reports: An ExplanationA credit bureau (also called a credit reporting agency) gathers, maintains, and sells information about your credit history. It collects information about your payment habits from banks, savings and loans, credit unions, finance companies, and retailers. That information is gathered into credit reports that are used by creditors or lenders. What Information Is On My Credit Report?Your credit report contains your credit history. It includes all of your loan and credit card accounts with specific account information, such as the date opened, credit limit or loan amount, balance, and monthly payment. It also includes late payments, bankruptcies, liens, and collection agency attempts to collect past due amounts. What a Good Credit Score Means for Your FinancesIt's important to maintain a good credit history. A good credit history means a good credit score. A good credit score means you're a good risk to lenders which makes you eligible for better rates. A poor credit history and/or score means you're not a good risk to lenders which subjects you to higher rates. Higher rates mean higher payments. It's also possible to be denied credit if the score is low enough. It's important to review your credit report. Financial experts advise to check your credit report once a year for inaccuracies. A 2004 Federal law now means that you can now receive a free copy of your credit report every year from each of the three major credit reporting agencies. Visit AnnualCreditReport.com for more information. Bottom LineThe bottom line is that you should do everything possible to maintain a good credit history to keep your score high. The higher your credit score, the more options you'll have when it's time to get a loan. If your credit report contains a few blemishes, don't worry. Learn what you can do to improve your credit score.
CREDIT BUREAUSEquifaxInformation Service Center National Consumer Assistance Center Customer Disclosure Center
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