05/21/2020
- ʜᴏᴡ ᴅᴏᴇꜱ ɪɴꜰᴏʀᴍᴀᴛɪᴏɴ ɢᴇᴛ ᴛᴏ ᴍʏ ᴄʀᴇᴅɪᴛ ʀᴇᴘᴏʀᴛ? 💳
The credit reporting system includes three main players:
- Consumers
- Credit bureaus
- Financial companies, such as banks, lenders and credit card issuers
Information about your credit cards, loan accounts and credit inquiries is reported electronically to the three main national credit bureaus—TransUnion, Equifax and Experian—by lenders and creditors roughly every 30 days. The bureaus collect and store your credit information in your credit file for future reference. Meaning, your behaviors can be reviewed in the future by others to determine your risk level.
Businesses, such as auto loan lenders, banks, credit unions, credit card companies and insurance agencies—even employers—use your credit data from the credit bureaus to determine your risk level. Once they have an idea of how risky it is to lend you money, they determine the rates you have to pay or other terms and conditions. Or, they may determine not to loan you money or give you a credit card at all. They may also use this information to send you pre-approved offers in the mail.
The three national credit reporting agencies don’t share information with each other and not all lenders or creditors report to each. As such, your credit reports from TransUnion, Equifax and Experian can contain different information about you. So, it’s important to monitor all three reports because you can never be sure which one will be used when you apply for a new account. You also want to make sure you review them for any errors that are damaging your scores. Learn more about how to dispute an error on your credit reports. source:credit.com
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