How Credit Bureaus Generate Credit Report & Work to Fix Poor Credit Rating

Saturday, June 20, 2020, 6:00 AM | Leave Comment

Credit reports collected by the Credit Bureaus play a big role in fixing credit rating.

This report helps one to examine the report and underline the mistakes on which you will work to improve.

These are the three major credit bureaus: TransUnion, Equifax, and Experian. However, these bureaus work in a group but these are established separately. It means their entire task is to distinguish but related to each other.

The bureau store all the information of an individual such as financial accounts and history. All this information is displayed on the credit reports. This report is then used when you contact the moneylender.

Virtually, the Credit report helps the lender to decide whether you are reliable or not.

If your credit report is below the mark, you will either resolve it yourself or contact the credit repair company.

In both conditions, somehow you have to connect to the Credit Bureaus to evaluate the poor credit score.

To understand the whole process, learn how the credit bureaus proceed:

What Credit Bureaus Do

  • Most important, they generate the credit report

  • They may help to use the information in your report to evaluate the credit score

  • Share your credit report to the companies that offer credit cards to add an Authorized User Tradeline

  • As per the request of the consumer, the bureaus can offer the credit report is free of cost but only once in a year.

What Data Credit Bureaus Collect

The credit bureaus have various sources to collect useful information. This data helps to generate a credit report.

  • Information Collected From The Creditors: The range of creditors includes the banks and Credit card issuing firms, etc. These creditors may report the necessary information relates to the accounts and relevant activities to the Credit Bureaus. Due to this act, the creditors are also called ‘Data Furnishers’.

    Information Might buy By the Bureaus: There is a certain type of information on your credit report that is bought by the bureaus. For example, a consumer credit bureau may consult with different credit bureaus to buy public records. This kind of information may useful for government tax liens and prevent bankruptcy records.

  • Information That Is Exchanged Among Three Bureaus: Although the three bureaus are different and work as the competitor, at some point they have to share the important information. This kind of situation appears when there is a case of fraud alert with any of the bureaus. The bureau immediately shares the information to alert the other bureaus.

How Important These Three Bureaus Are

There are many other credit agencies like ChexSystems, National Consumer Telecom & Utilities Exchange, CLUE, etc. But, The TransUnion, Equifax, and Experian are the big three major consumer credit bureaus. Without getting the credit report you can’t come to know what the dispute in your credit report is and how you can proceed to repair this.

How to Dispute an Inaccurate Data from the Credit Reports

According to the Fair Credit Reporting Act, every consumer has the right to obtain the credit report from the credit agencies and examine it deeply. If there is any single inaccurate information, you can make a dispute immediately. On resolving this issue, you can get increase in credit score. But you should remember the credit report can be obtained free once in 12 months while if you neglect the limit or request for the credit report twice in a year, you will be charged with the fee of $12 (it may flexible).

To dispute the inaccurate information, you can opt for the physical visit, on-call discussion, and send an electronic mail while sending a letter is rarely chosen method.

Nevertheless, if you are unable to fix poor credit rating then you can hire the Tradelines Company to repair it. The company has different technical tools to boost credit score like tradelines for sale.

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