Nov 06 2010
You might never see one, or visit one, but the credit reporting agency is definitely there in the background. These are the companies that assign credit ratings for both corporations and individuals. The loan rating is a way of measuring credit worthiness-or in other words, a chance to repay financing.
You might envision an online room within an unknown place where individuals in lab coats collect and collate personal data on people. Actually, in the earliest days of credit rating, this was precisely the case. The ratings were compiled by hand and banks could call and check up on anyone they wanted verbally. In modern times, the data is submitted via magnetic tape reporting or secure data and also the only times humans really involved is when there is an inaccuracy on your credit report that should be investigated.
You will find hundreds of extensions from the “Big Three”Experian (formerly TRW), Equifax and TransUnion that are located all across the country. Because the credit bureaus competitors and do not share information with one another, it may be beneficial to check the Big Three regularly to ensure there aren’t any errors or omissions on your personal credit history.
Thus, it becomes the duty from the individual to check up on the folks which are checking up on everyone else. Changes within the statutes for credit reports now make it possible for everyone to get one free report from each of the three major credit bureaus each year.
Looking at your personal credit history will give you valuable insight how your history is being rated. It would also assistance to understand the laws that govern how these agencies can do business. Know your rights! Since the saying goes, “If you don’t know your rights, you don’t have any.” There may be times that require you to challenge something inaccurate in your report. Since your credit track record may be the way many firms will “know” you, you want every item inside it to become absolutely accurate.
It may seem that you have a favorable credit report but a credit history which has something questionable contained within it may be the main difference between getting that new credit card or auto loan and being denied. And if you’re in the process of applying for credit without it knowledge, you can be turned down. This is why checking up on your individual credit report on and on through the complaint or correction process if necessary is really important.
Because the credit rating agency may be the standard of the way the world determines credit worthiness, make sure that any lenders or retailers for you to do business with are reporting to one of the major agencies and that information gives a one-hundred percent correct picture of the way you handle your personal finances.