In America, your credit history is major business. You need a good credit history to do everything from leasing an apartment or condo to obtaining a new job to requesting more credit. Whatever the purpose for your credit history needs, you ought to understand a bit about the credit bureaus.
There are 3 significant credit bureaus in America: Equifax, TransUnion and Experian. Each one compiles its own credit file and report on you and determines a credit score. When a third-party, a potential employer, for example, runs a credit check on you, he asks the credit bureau to produce your file or score. Likewise, a company like Visa will report your financial history to the credit bureaus, who then include it to your file, despite whether it is beneficial or negative.
Regrettably, some items get overlooked or are gotten in erroneously on the credit bureau’s end. This is why it’s essential to constantly check all 3 of your credit reports– you wouldn’t want to only check your Equifax report and then discover that the Experian report your landlord is pulling shows several errors that drop your credit history into un-rentable territory.
Equifax provides third-parties, consisting of lending institutions, access to your FICO score or VantageScore. When you request your credit history however, they provide a various number, one based on their own exclusive algorithms.
TransUnion provides FICO and VantageScore, however also provides scores that are product-specific. For instance, it might provide one score to lending institutions pulling credit for a charge card application, however another to employers or property managers.
Experian is a bit different. Although they provide FICO scores, VantageScore is only offered to lending institutions upon request.
Since the 3 credit bureaus are so different and frequently have different financial info about you, it is very important that you constantly get your free credit history from each bureau a minimum of as soon as a year. In addition, make sure to ask for a copy of your free credit report to validate that the info each of the 3 bureaus has is updated and precise.