Insight to the Bureau of Credit Reporting

credit bureaus

credit bureausHave you ever thought about the credit bureau? Chances are if you have ever applied for credit, your credit rating has crossed your mind. A good credit rating is important for obtaining credit in the future, renting property and even getting a job. Your insurance rates are also tied to your credit rating.

You may think that your credit rating is managed by one bureau, but this assumption would be wrong. There are three separate companies that track consumers’ credit histories. Experian, TransUnion and Equifax each maintain a file for individuals who have a recorded credit history. Each major credit bureau is a for-profit company that offers products and services to subscribers and customers.

Your Credit History

Your complete credit history includes the report from each of the three credit reporting agencies. Your credit score could be good with two credit bureaus and the third could have an entry that lowers your

redit rating. The entry may be an error. Whether the entry is an error or a credit issue, you can work to resolve the issue and raise your credit score with that reporting agency.

Reports from each of the credit bureaus should be tracked when you are planning a major purchase. If you seek to enhance your credit score in hopes of qualifying for a mortgage, you will need to keep tabs on all three credit reports.

You can get a free copy of your report from all three agencies once per year. AnnualCreditReport.com provides consumers with reports from each credit bureau, free on an annual basis. However, if you are on a mission to improve your credit score, access to your reports just once per year is likely not enough to effectively monitor your credit scores.

Credit Monitoring

Credit monitoring services provide consumers with a regular update on their credit scores and credit reports. The range of services for credit monitoring services is wide. A credit monitoring service may only report changes to your credit score. Other plans offer an updated copy of your credit report from one credit agency. Other, premium plans provide consumers with reports from all three agencies at regular points in time.

The best credit monitoring service for you is the one that best meets your objectives. If you just need a service that will alert you to changes on your credit score, select a less costly service. When you are taking strides to improve your credit standing and you are clearing up old issues, select a credit monitoring service that will provide you with detailed information from all three agencies at least once per month.

Your Credit is Your Future

Having a good credit rating is one way to save money. When you have a good credit rating, you are more likely to qualify for low interest credit cards and better interest rates on loans. A good credit rating will get you a better rate on a mortgage. You could save as much as $30,000 or $40,000 over the life of the mortgage if you qualify for an optimal interest rate.