Everything You Need to Know About Credit Bureaus
What Are Credit Bureaus?
Credit reporting agencies, also known as credit bureaus or consumer reporting agencies, are businesses that collect information relevant to your credit and financial standing.
This information is used to create credit reports and scores, which are used by lenders and other businesses to assess your creditworthiness.
The three largest credit bureaus in the United States are Equifax, Experian, and TransUnion.
What Information Do Credit Bureaus Collect?
Credit bureaus collect information from a variety of sources, including:
- Your credit card and loan accounts
- Your payment history
- Your employment history
- Your public records (such as bankruptcies and liens)
How to Check Your Credit Scores
You are entitled to a free copy of your credit report from each of the three major credit bureaus once per year.
You can request your free credit reports online at AnnualCreditReport.com.
You can also get your credit scores from a variety of sources, including:
How Credit Reports and Scores Affect You
Your credit reports and scores are used by lenders and other businesses to assess your creditworthiness.
A good credit score can help you get approved for loans and credit cards at lower interest rates.
A bad credit score can make it difficult to get approved for credit, and you may have to pay higher interest rates if you are approved.
How to Improve Your Credit Score
There are a number of things you can do to improve your credit score, including:
- Pay your bills on time, every time.
- Keep your credit utilization ratio low.
- Don't open too many new credit accounts in a short period of time.
- Dispute any errors on your credit report.
Komentar