Consumer Credit

Creditors use credit reporting agencies for obtaining information on a person when they have applied for any type of financing. There are three major credit reporting bureaus that report credit and background information. They are Equifax, Experian, and TransUnion. When you get financing or credit, it is reported to one of these bureaus by the company or creditor you received credit from. The creditor then reports your payment history until your debt is payed in full. These credit reporting bureaus do not check the accuracy of the information that is sent to them by the creditors. They are payed only to report your credit history whether it is true or not!

Credit bureaus also report personal information on every person who has a Social Security number, such as your address, employer, spouse’s name, etc.Because of the many errors reported by credit bureaus, Congress has recently passed The Fair Credit Reporting Act. This law makes credit bureaus more accountable for the accuracy of the information they report. The act also requires the bureaus to divulge information on how to improve your credit scores.If you have been turned down for credit or have recently obtained your credit report and don’t like what was reported, you can take steps that are easy and efficient towards repairing your credit.

I have used these steps myself and it has improved my credit considerably. I have turned negative items, such as late payments and repossessions into positive items or removed them completely from my reports.