In America, your credit rating is major business. You need a good credit rating to do everything from leasing a home to obtaining a brand-new employment to looking for more credit. Whatever the purpose for your credit rating needs, you must know a bit about the credit bureaus.
There are three major credit bureaus in America: Equifax, TransUnion and Experian. Each one compiles its own credit file and report on you and computes a credit report. When a third-party, a prospective company, for example, runs a credit check on you, he asks the credit bureau to produce your file or score. Likewise, a business like Visa will report your monetary history to the credit bureaus, who then add it to your file, despite whether it is positive or bad.
Regrettably, some items get ignored or are gotten in incorrectly on the credit bureau’s end. This is why it’s extremely important to always check all three of your credit reports– you would not wish to only check your Equifax report and then find that the Experian report your landlord is pulling shows numerous errors that drop your credit rating into un-rentable levels.
Equifax provides third-parties, including loan providers, access to your FICO score or VantageScore. When you request your credit rating though, they provide a different number, one based upon their own exclusive algorithms.
TransUnion provides FICO and VantageScore, but also provides scores that are product-specific. For instance, it may use one score to loan providers pulling credit for a credit card application, but another to companies or landlords.
Experian is a bit various. Although they use FICO scores, VantageScore is only offered to loan providers upon demand.
Because the three credit bureaus are so various and often have dissimilar monetary information about you, it is important that you always get your totally free credit rating from each bureau at least once a year. In addition, make sure to ask for a copy of your totally free credit report to confirm that the information each of the three bureaus has is updated and precise.