A Comparison of Some Credit Report Companies

A Comparison of Some Credit Report Companies

Credit report companies, or credit bureaus, are venues for a consumer’s credit history and activities. In the United States alone, there are more than 1,000 credit reporting companies. Amongst the vast array of companies out there, the majority are owned by three large national credit bureaus. These are the TransUnion, Experian and Equifax. Each one has its own description of the FICO Fair Isaac Corporation scoring method to rate a consumer’s credit. A FICO score is a vital tool in the ability of the consumer to obtain loans, insurances, credit cards and other desired credit applications.

A Comparison of Some Credit Report Companies

Before enrolling in a credit reporting company, one has to learn about the services each company has to offer. This service includes:

  • Identity theft protection
  • Continuous credit monitoring
  • Credit reports and,
  • Credit score methods.

Each company has its own website and a comparison between them can be made through the information offered by these companies. You can browse through the links about the details pertaining to specific products available and which agencies the major bureaus are using for credit monitoring services.

The Experian credit report consists of the financial performance and identification data of a consumer. Reports can be attained through creditors, public records, and other legitimate sources. TransUnion on the other hand, includes information about the consumer’s identification, factors that may affect credit worthiness, credit activities and history and inquiries both from the past and the present. It does not include though, the particulars about medical histories, personal business accounts, and major purchases that are fully paid.

The 3 leading credit report bureaus known to all, TransUnion, Experian and Equifax had their very own methods and approach for creating the credit report and identifying the consumers’ ability to own a credit line. But, these companies are goaled to one major purpose, all them have agreed to adapt to a new method. And this method is called the VantageScore system. This method provides the consumers to have a better understanding of the credit scored they gave garnered. More so, it will provide a highly predictive and consistent scoring process and result.

Since January 1, 2004, all these credit bureaus are obligated to offer one free credit report per year. However, they are not really compelled to hand out free credit score. They charge consumers 9USD to 15USD if scores are to be included in the report. But they are ways to avail of free credit reports and scores. A consumer should only enroll through a legitimate credit monitoring service. Some of the valid credit reporting companies is the GoFreeCredit.com which provides a free Equifax Credit score, a free 30 day trial, free 3 in 1 credit monitoring and a monthly fee of 16.95USD after trial period. FreeScoreFinder is also providing a 7 day free trial, 24/7 Email alerts, accessibility to your credit score and a fee of 16.95 USD monthly fee after trial.

How Does a Credit Report Works?

How Does a Credit Report Works?

Considerably, we are reliant on those who are equipped to lend us the financial assistance that we need. And these are financial organizations or institutions such as banks, lending companies or credit card companies. If you want to manage your finances effectively, especially when you are in debt, you have to be well-aware of the dos and don’ts. Credit lenders and companies will base their decision on whether or not to lend you money on these factors.

Getting Started: Fill-out an Application Form

An application form will not only give the lenders the basic information from you, but also, it gives them the idea of how much you earn, whether you own a home and the purpose why you want to borrow money. Some information, may seem a bit irrelevant to you like whether you are married, divorced or single? Nevertheless, the information you will be sharing with them will be used by the lender in their credit scoring process. This is important for them to create a profile for you and your circumstances.

How Does a Credit Report Works?

References in credit files

For your information, whenever you apply for credit, whether it be a credit card application, for a bank loan, a car loan, or hire purchase, our lender will do a search together with their chosen reference agency to establish a decision if you are creditworthy or not. The three most known credit reference agencies are; Callcredit, Equifax and Experian. They have all the information from the electoral roll and they contain the details which are given to them from various banks and organizations about your credit history for cards, loans, and mortgages that you already obtained. These financial organizations share all the information they have on you. So, it is imperative that the information any of these agencies has about you is current and correct.

Credit scores

Credit scores are important too as this will give your lenders the determining point whether you are a good or a bad risk for having a credit account. Each of them has a different criteria and it depends on their target market. Score points are used as basis: the more points you will have, the greater your chances are in getting your credit.

In conclusion, when you have a credit card, or a loan to buy a car, a house or a credit line for you to do some large purchase, you most likely had your credit report evaluated by your lender or your credit card company. There is free credit report and score which can be a basis for a guaranteed loan approval. If your report declares bills that are not paid on time, or if it says that you have plenty of debts, chances are, you may not get that loan. Or, you may be paying a higher interest rate. As a credit consumer, it is vital to be consciously aware of your credit activities in order for you to handle your accounts without any possible mishaps.