How the 3 Credit Report Agencies Do Their Jobs

The 3 credit report agencies that are influential in today’s credit world are Equifax, Experian, and Trans Union.  It may seem too much like Big Brother for your taste, but they actually do you a service if you want to get credit.  They have a systematic way of getting your information and sharing it. 

These 3 credit report agencies are set up to turn a profit.  They are not a part of the government, although the government does regulate them.  They are allowed to be affiliated with smaller local credit bureaus, but they do not have the legal ability to own them. 

Getting a report from one of the 3 credit report agencies is not the same thing as getting one from another.  They do not work together; in fact they are in direct competition with each other.  To get a true picture of your credit health, it may be necessary to get reports from all 3 credit report agencies. 

The 3 credit report agencies all work in basically the same ways.  They go to businesses, banks and other lending companies, credit card companies, and anyone who gives credit to consumers or businesses. 

They court these companies in an effort to get them to join in the list of reporting companies held by these 3 credit report agencies.  In return, these companies are given the ability to check out the credit history of consumers to whom they are lending money or offering services like rental properties, for example. 

The Fair Credit Reporting Act is often the only law standing between consumers and the power of the 3 credit report agencies.  This law grants you certain rights.  These rights affect the way the 3 credit report agencies must do their jobs. 

First, you must be notified whenever information from entities such as the 3 credit report agencies is used against you.  This is up to the person or business that used your credit report to make negative judgments about you.  It is based on the detailed data given them by the 3 credit report agencies. 

If you are turned down for credit because of information supplied by one of the 3 credit report agencies, you have up to 60 days to request a free report from that agency.  This gives you a chance to see exactly why you were turned down in the first place.  If you do not understand why you were turned down, it is a good idea to get this report.  It may lead you to discover identity theft or erroneous charges. 

If the credit report given to you by any of the 3 credit report agencies shows information that you know to be untrue, you have the right to contest those findings.  This means that the credit bureau has to do an investigation by going to the source of their information and getting evidence as to the nature of the charges.  You will get a report of the results. 

The 3 credit report agencies all work independently.  They gather information on your credit worthiness and report it to lenders and others who request it.  They are very powerful, but with knowledge of your rights, you can keep them working in your favor.