Credit Reporting Agencies

Credit reporting agencies sell a detailed account of a consumer's bill payment histories and any outstanding balances with a creditor to a paying lending facility as a professional service. With these bureaus, lenders and credit extending companies can determine how big of a financial risk a consumer applying for a charge line will be. Charge cards, banking institutions, mortgage companies, and insurance agencies all purchase reports to determine how much or how little lending to extend, if any. Lending is a major financial system in today's society, and credit reporting agencies have developed an industry that other businesses depend upon to reveal the fact in credit reporting about consumers.

Bureaus will gather financial facts and personal information about a consumer and compile this information for the purpose of financial reporting. Credit reporting has data that includes personal information about where the consumer lives and if the consumer is married, single, or divorced. This information, along with payment schedules histories, late fees charged, and outstanding balances, is evaluated and a score is assigned. A score is the number that determines whether or not a consumer can buy a car, mortgage, or get the best interest rate, or even insurance premiums. Credit reporting agencies contact creditors and continuously compile information on and about consumers. Bureaus will then sell the information to department stores, banks, mortgage companies, charge card companies, and other lending companies that have clients and customers applying for loans.

Consumers may contact each of the three major bureaus that operate in the United States to request a copy of their documents. The Fair Credit Reporting Act (FCRA) mandates that the credit reporting agencies allow consumers to see a copy of their own documents once a year. This action gives consumers the opportunity to review their reports and look for incorrect documentation or even identity fraud. Any consumer that has been denied lending due to a their documents, can also request one free report to check for inaccurate information from that particular agency.

To obtain copies of this document, consumers need to contact one of the three bureaus listed for the United states, or log on to a government website that explains the FCRA law. Credit reporting and the importance of keeping a healthy score can also be accomplished online through the Internet. Taking the time to discover what a report says and taking the time to know how important lending is to society today will be informational and enlightening. "What ye know, the same do I know also: I am not inferior unto you" (Job 13:2).

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