There used to be very many credit bureaus in the past. Before the 50s and 60s the information was stored by many small companies at the county level. The information in their databases was not standard and even contained information about their customer’s marriages and drinking habits.
These small organizations began to fade away with the entry of Equifax previously referred to as Retail Credit Co. Transunion and Experian came later. These are currently the recognized 3 credit score bureaus that collect and compute your credit information.
Collecting Data
All the three organizations have their own unique databases. They collect information from their clients independently. Lenders may report to only one of these organizations. This means thateach of them may contain unique information that is distinct about a particular person.
Usually the databases of these organizations may contain a number of different pieces of information about your credit history. These includes, information on credit card usage of a given period of time, it also includes loans taken in the past, repayment of debt and companies that have requested information about your credit history. This information is compiled into a document that contains data from the three companies.
Compiling Data
Because all three organizations may contain distinct information, the data is compiled and compared from all the three organization. If this were not the case, one of the bureaus would show a significantly low credit score from your credit report online and the other a high one because information may have been sent to one of these companies and not the other.
The federal law that governs this is stipulated in the Fair Credit Reporting Act (FCRA). It upholds your right to a fair and accurate report free from errors. This means that if there are errors in your report, you should not hesitate to report them.
Your Rights
The Fair Credit Reporting Act also protects the right of the individual seeking the credit report online. Unlike in the organization that existed before the 50s, these organizations are not allowed to store personal information unless it is directly related to your history. They can therefore not hold information regarding marital status, political affiliation, religious beliefs and medical history.
The 3 credit score is particularly suitable for people who do not keep tabs of information relating to their finances. It is advisable to check your history once a year or more, to ensure everything is right.
These small organizations began to fade away with the entry of Equifax previously referred to as Retail Credit Co. Transunion and Experian came later. These are currently the recognized 3 credit score bureaus that collect and compute your credit information.
Collecting Data
All the three organizations have their own unique databases. They collect information from their clients independently. Lenders may report to only one of these organizations. This means thateach of them may contain unique information that is distinct about a particular person.
Usually the databases of these organizations may contain a number of different pieces of information about your credit history. These includes, information on credit card usage of a given period of time, it also includes loans taken in the past, repayment of debt and companies that have requested information about your credit history. This information is compiled into a document that contains data from the three companies.
Compiling Data
Because all three organizations may contain distinct information, the data is compiled and compared from all the three organization. If this were not the case, one of the bureaus would show a significantly low credit score from your credit report online and the other a high one because information may have been sent to one of these companies and not the other.
The federal law that governs this is stipulated in the Fair Credit Reporting Act (FCRA). It upholds your right to a fair and accurate report free from errors. This means that if there are errors in your report, you should not hesitate to report them.
Your Rights
The Fair Credit Reporting Act also protects the right of the individual seeking the credit report online. Unlike in the organization that existed before the 50s, these organizations are not allowed to store personal information unless it is directly related to your history. They can therefore not hold information regarding marital status, political affiliation, religious beliefs and medical history.
The 3 credit score is particularly suitable for people who do not keep tabs of information relating to their finances. It is advisable to check your history once a year or more, to ensure everything is right.