What do the three credit bureaus do?
Posted By: Chase Sagum | October 2, 2012 | 0 Comment(s)
Experian, TransUnion and Equifax record your credit information and inform those eligible to know it. The three credit bureaus can help you accomplish a lot for you, though, if you work with them. The bureaus can help you save money on loans, learn how to be a better steward of credit, and can even tell you if something’s shady through your annual reports.
What is a credit bureau?
Credit bureaus or consumer reporting agencies are for-profit companies that are not affiliated with the government. However, their regulation was formed by a piece of legislation known as the Fair Credit Reporting Act (FCRA). These bureaus receive and document any information they receive about you and all other consumers regarding utility and loan payments, tax liens, lawsuits and other potentially credit-affecting situations. Then they report this information to any company that inquires about you.
A credit bureau is basically just a company that collects, stores and reports information on every kind of payment you make. While the bureaus may not have exact figures on how much your loans are, they do receive notice every month that you either did or did not pay. If you did, you look like a responsible person. If you did not, you look like a flake.
A credit bureau is a company that works under the guidelines of the FTC to both govern and protect you. When you attempt to get a loan, rent an apartment, or even get some kinds of jobs, your credit history and score may be pulled to verify your financial dependability. Almost everyone checks credit these days, and if yours is really bad you will be on the bottom rung for a lot of services. Across your job opportunities, your credit card,
car payments, and mortgage interest you will throw away tens of thousands of extra dollars if the credit bureaus think you’re a flake.
What do the bureaus do?
Credit bureaus receive special status from the government in exchange for keeping track of every financial move you’ve ever made. They know where you live, they know what you spend, and they even know when you are involved in a lawsuit. As well, they provide services that help you build and maintain good credit. These services include consulting with you, reporting your information and helping you dispute false information.
The credit bureaus keep detailed records of your debt levels, your credit usage and your payment history. If you are late on any obligation, even including being late enough on a utility payment that it gets shut off, the credit bureaus will know and report it to any company that asks. These organizations are more on the ball than Santa Claus.
Aside from keeping up credit reports that you can look at every year for free by visiting annualcreditreport .com. the credit bureaus can also help you with disputes. When someone steals your credit card and buys several thousand dollars worth of electronics a few minutes later, you can often save your credit by talking with the credit bureau. Additionally, credit bureaus can help you safeguard yourself by giving you credit advice.
What is the relationship between the bureaus and the FTC?
The Federal Trade Commission or FTC works closely with the credit bureaus, as it is mandated by the FCR A to oversee their consumer reporting and general operations. Its purpose is to protect you from fraud, and the credit bureaus work to help people who help themselves credit-wise. While not directed toward the same goal, these companies all work to help you live a better financial life.