Credit bureaus assign scores and ratings to your credit history based on how often you pay your bills, what amount you owe, as well as the length of time you have been applying for credit. These scores enable lenders to predict whether or not your ability will pay your bills. These scores range from 300 to 800, with a higher score indicating that you pay on time. These credit bureaus compile, synthesize, then present this information in order to lenders and other business.
The three main credit bureaus are Equifax, Experian and TransUnion.
The credit bureaus will track your credit and assess your risk to make a decision about lending to you. There are many credit bureaus out there, but most lenders will use one or two of the major three. Equifax, for example, was founded in 1899 as a retail credit company, and by the 1920s had offices across North America and credit files for millions of Americans.
Each bureau has its own different business model and offers different credit monitoring services. While TransUnion focuses primarily on consumer data, Equifax also sells consumer information to retail companies and government agencies. Both companies offer credit monitoring services to the general public.
They each have free annual credit reports
Call the number above or visit the website to get your annual credit report for free. Within 15 days, the report will be emailed to you. You may also request it in staggered intervals, or up to four months apart. However, free credit reports do not give you a complete picture of your credit at any given time. A monitoring service is available for as low as $40 per year. It can cost more than $100.
Although all three credit bureaus have information about you, information can differ between them. Because individual creditors are not required to report to all three bureaus, this is possible. Some mortgage companies may report only to one or two of the three bureaus. So, it is important to check all three to see if there are any discrepancies. This could affect your credit score.
They each have a background check
To check if someone is a felon, consumers can look at their credit reports. This is a good idea to avoid identity fraud and theft. These reports are useful for many purposes such as loan applications, utility deposits, etc. These reports contain identifying information, past and current credit accounts lists, and payment history.
Equifax, Experian, or TransUnion all provide credit reports. Each bureau may have a different way to calculate your credit score. This information could also differ from one another. For your protection and good credit, it is crucial to know what each bureau does not do.
Each of them has a VantageScore credit rating model
FICO scores are still popular but VantageScore credit score uses a more specific model. It considers factors like the type and age of credit accounts as well as past payment history. VantageScore also measures credit availability and trends. You can access it free of cost on Credit Karma's website.
VantageScore is a product of three major consumer credit bureaus. It was created in 2006 and has been updated several times since then. VantageScore 3.0 was launched in 2013. It quickly rose to be the most popular credit scoring system and has helped more than 40 million Americans improve their scores. VantageScore 3.0 is still used by many lenders for loan approvals.