What are credit score agencies and their impact on you
What are these credit score agencies and do they really affect you? If you live in the United States then you will be aware that your credit score is very important and so these credit score agencies to affect you. Your credit rating may determine whether you qualify for a mortgage, a car loan or any other type of credit you might apply for. Credit scores are calculated by agencies known as credit bureaus. If you understand what these agencies do and why your credit rating is so important then you can improve your own credit rating and maintain a good score.
There are three main players in the credit bureau game, these being TransUnion, Equifax and Experian. These three companies provide credit scores to lenders when those lenders are doing a credit check on potential customers. These three agencies collect information that relates to credit, loan information, personal debts, credit card information, etc. and they calculate a person’s credit score based on this information.
Then this information is passed on to banks, lenders and even employers who want to use the information to evaluate your risk. As well as credit information, the credit bureaus will also collect some personal information such as your current address and how long you've lived there and your current employment as well as employment history. They will also consider financial data such as how much credit you are currently using in relation to how much is available to you. They will check to see what your history is like in relation to paying bills and mortgage payments on time and also the different types of credit that you currently have.
The three credit bureaus collect this information from creditors, lenders, debt collection agencies, utility departments and open records. These sources will provide information regarding your bill payments, debt payments and how well your debts are managed. This information could be positive or negative in its affect on your credit score.
When a credit bureau has the information required to calculate a credit score, it will then put it through a complex algorithm to come up with a score. Then whenever a bank, lender or employer requests your credit score they can receive your score along with the information in the credit report through these credit agencies.
You can also access your own credit score at no cost but only cone per year. It is advisable that you do check your score once a year so you can make sure that your rating is good. If it is falling then you can make some changes to push it back up. It is stipulated in the Fair Credit Reporting Act (FCRA) that they allow a person access to their credit score once a year.
If you would like more information on the three credit agencies you can contact them directly through the following information:
TransUnion address and contact number:
Trans Union
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
(800) 916-8800 or (800) 888-4213
Experian address and contact number:
Experian
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742
Equifax address and contact number:
Equifax
P.O. Box 105873
Atlanta, GA 30348
(800) 685-1111
I hope that the information contained in this article has given you a better understanding of the credit bureaus and credit scores and how you can keep an eye on your own credit rating and improve it if necessary.
TAGS: credit score agencies, credit score
Article Source: Messaggiamo.Com
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