Were You Aware That Your Three Bureau Credit Report Can Prevent You Getting A Loan

You have probably heard the expression ‘three bureau credit report’ but have you ever wondered just what it is and why it is important?

Within the U. S. the three major credit agency firms are Equifax, Experian and TransUnion. Each one of these private firms keeps a credit file on you containing private information (like your name, address and details of your work); details of your payment history on Mastercard accounts, mortgages, car loans and other credit arrangements; details of any official documentation concerning your financial affairs (like notices of bankruptcy and court judgments) and details of any inquires made to the company by creditors concerning your financial standing.

As well as the credit file maintained on you, each company also uses its own formula to calculate a credit score for you which is designed to give potential lenders a suggestion of your credit rating and thus of the danger that they would be taking if they were to grant you a loan or extend credit to you.

It is important to understand that these three firms all operate independently of each other and the information held by each, and the credit history figured out by each, may well differ. In general, most major lenders,eg banks and credit card companies, furnish information to all three companies but many smaller lenders, such as local malls which issue their own store cards, may only provide information to one of the three firms.

You have entitlement to request a copy of your credit history from each of these companies once a year free and more often if you want for a price. But to make life slightly easier it’s also feasible to obtain a three bureau credit report which allows you to view the contents of all three credit reports in a single document.

Hence why is this important?

The contents of your credit history files will define whether you are able to obtain credit in the future maybe to get a house, a new auto or help to pay for a child’s school education. What might be worse than trying for a loan to buy your new ideal home to find that you are turned down because of your credit history?

Creating and managing a good credit history should be an essential part of your total monetary planning all though life and this suggests making certain that you’ve got the best possible credit score on file with each of the three credit agent firms.

Your starting point should therefore be to obtain a three bureau credit report and check that the information currently recorded is correct . Firms do screw up and it is not unknown for people with good finance standing to have a blemished credit score because of blunders on their credit history files. You should thus check the report carefully and take steps to correct any screw-ups to be sure that your credit files are correct, therefore avoiding the need for debt assistance.

Having established that your credit score is correct, or taken steps to correct any errors, you must then work to achieve the best possible credit history and, most significantly, keep an eye fixed on your credit history be asking for copies of your three bureau credit report at regular intervals.