Credit Reporting Bureaus And Their Importance In Credit Rating
A credit bureau is an organization that maintains records of an individual’s credit history. This information is used by various creditors and banks to judge the creditworthiness of individuals seeking loan. There are times when credit card companies refer to the credit reports to see whether a particular individual can be trusted with a credit card or not. Non payment of previous debts, late payments and any financial irregularity gets recorded in the credit report and these impacts the credit report in a negative manner. A bad credit score may prevent an individual from getting a fresh loan in future.
Three major credit bureau phone numbers and addresses
There are 3 major credit bureaus in United States of America. They are-
Experian
Mailing Address: P.O. Box 2002, Allen, TX 75013
Toll free no. 1-888-397-3742
TransUnion
Mailing Address: P.O. Box 1000, Chester, PA 19022
Toll free no. 1-800-888-4213
Equifax
Mailing Address: P.O. Box 740241, Atlanta, GA 30374
Toll free no. 1-800-685-1111
As per a Federal Law passed in the year 2004, an individual may obtain his credit report for free from each of the main credit bureaus mentioned above. He may do so every year to evaluate his financial condition.
Importance of credit rating
Credit score is an important aspect in determining the creditworthiness of an individual. A good credit score goes a long way in landing you a good job, getting a rented apartment at a place of your choice, availing a fresh loan, getting a credit card etc. A good credit score indicates the financial reliability of an individual.
Instances when you can claim a credit report for free
It may be such that you have applied for a loan and was refused one. Under such circumstances, you can apply for a credit report for free. However, it is mandatory that you attach the loan application that was rejected. You are eligible to claim the credit report within 30 days of the rejection.
You can apply for a free credit report if you are not employed and planning to apply for a job within the next 60 days.
If you are a recipient of public welfare assistance or you have doubt that your file contains errors resulting from fraudulent activities or identity theft.
Residents of Maryland, Maine, Colorado, New Jersey, Vermont, and Massachusetts are entitled to get a free copy of the credit report every year from each of the credit bureaus. Residents of Georgia are entitled to get 2 free credit reports every year from each of the credit bureaus.
How to know which credit bureau has my information?
If you have a bank account, credit account, or bills it is understood that one of the credit bureaus must be having the information. Credit bureaus work in co-ordination with partner companies. For instance, if you register with a utility company, it is likely that the utility company may be associated with one or more credit bureaus. However, if the utility company is associated with only one of the credit bureaus (say Experian); if you are unable to make payments only Experian will be rating your credit score and not the other 2 credit bureaus.
It may be mentioned here that credit reports obtained from the 3 different credit bureaus will differ widely depending on the companies the credit bureaus are associated with. Hence, it is best to get a copy of your credit report from all the 3 credit bureaus.