3 Credit Report

All consumer credit information in US is compiled by a credit bureau, or credit reporting agency (CRA). The credit bureau acts as a clearinghouse for the accumulated information. Even though there are a number of local and regional credit bureaus throughout the nation, they are all affiliated with one of the three major credit bureaus. Equifax, Experian, and TransUnion, the “big 3” national credit bureaus, operate independently and provide the three credit reports used by businesses and consumers.

Bankers, retailers and other businesses, called data furnishers, routinely report their payment experience with each consumer to the credit bureaus. Most creditors report their information to all three national bureaus. Yet, some smaller creditors may only report their information to one bureau. For this reason, the three credit reports from Equifax, Experian, and TransUnion may not be the same. Typically, the lender or creditor will request all three credit reports and compare them for the best credit assessment.

The collected data of the consumer’s credit history constitutes a credit report. Credit reports provide the names of creditors, the amount of credit available, the age and amount of outstanding debt, the timeliness of credit card and loan payments, along with personal and employment information. Potential lenders and creditors use the three credit reports as a tool to determine a person’s credit worthiness. Consumers with good and excellent credit reports are offered the lowest interest rates and the best payment terms.

Due to the vast amount of confidential information in a credit report and its significant role in obtaining credit, accuracy is imperative. Regular monitoring and reviewing of all three credit reports, at least annually, acts as insurance against mistakes and protection against fraud and identity theft. Under the Federal Fair Credit Reporting Act, each consumer is entitled to a free credit report, once every 12 months, from each of the three national credit bureaus. Consumers can request their credit reports online at www.annualcreditreport.com or by phone or by mail.

The contact information for all three national credit bureaus:

Equifax – www.equifax.com
Phone: 800-685-111; Address: P.O. Box 740241, Atlanta, GA 30374-0241

Experian – www.experian.com
Phone: 888-397-3742; Address: P.O. Box 2104, Allen, TX 75013-2104

TransUnion – www.transunion.com
Phone: 800-916-8800; Address: P.O. Box 2000, Chester PA 19022-2000

The Fair Credit Reporting Act specifies who can access a consumer’s credit report. Credit reports can only be viewed by businesses, such as lenders, credit card companies, landlords, with whom the consumer has initiated business (permissible purpose). These inquiries are called “hard inquiries.” When consumers exercise their right to obtain their credit reports, these inquires are called “soft inquiries,“ which are only visible on the consumer reports, but not on the business reports.

A credit report should not be confused with a credit score. Credit scores are numerical ratings based on the information in the credit report. FICO scores range from 300-850, the higher number represents the best credit score. Credit scores are not a part of the three credit reports but are ordered separately for an additional fee.