3 Credit Score

Credit reports are useful tools in conducting background checks, determining loan or mortgage eligibility, and calculating a consumer’s credit risk. Credit reports are made up of 3 credit scores known as FICO scores, with one score designated from each major reporting agency. Credit reporting agencies act independently of each other, though the FICO scores supplied by each may be similar. The credit reporting agencies are Equifax, Experian, and TransUnion.

Equifax, a corporation in the business of data resources, has been operating for over 100 years. The company deals largely in credit management, reporting, and fraud prevention related to credit reports. Experian is a global information services company, and works with businesses to manage credit risks and prevent fraud. They also work with individual consumers on credit scoring and management. TransUnion, founded in 1968, maintains credit histories on approximately 500 million consumers around the world. Together, these companies compile the 3 score credit report of every individual who has ever borrowed, charged, or repaid a loan or line of credit. Although these companies are considered “The Big Three,” there are numerous smaller credit reporting agencies that operate within local markets.

In recent years, a number of businesses have offered a free 3-score credit report to consumers in exchange for enrollment in a credit monitoring service. Although credit monitoring service can be an excellent tool for lessening the impact of identity theft, it is not required to view a credit report. According to the federal Fair and Accurate Credit Transactions Act of 2003, each individual is entitled to one free copy of his or her credit report every 12 months. It is advised by the Federal Reserve as well as the major reporting agencies that consumers take advantage of their free reports each year to check for discrepancies or suspicious activity. If the consumer does not wish to enroll in a credit monitoring service, his or her 3-score credit report can be obtained through the Annual Credit Report Website. Though this site is sponsored by Experian, Equifax, and TransUnion, individual credit reports and scores can also be obtained through each of these sites.