Credit Reports

Credit reports are important documents used by banks, lenders, and other financial institutions. A credit report is an account of a consumer’s credit history that is essential in determining whether he can or cannot be awarded a loan or other credit tools, such as credit cards. Borrowers’ credit standings are stated in the credit report, listing all the loans they have secured and whether or not they pay them on time. A credit score is ascertained using the credit report and this score is used to calculate the interest rates and formulate particular terms for several loans a consumer may secure in the future. The main concept that is determined by credit reports is called creditworthiness.

There are many credit bureaus in the United States, but there is what the industry calls the Big Three. The Big Three are the three biggest credit reporting agencies in the nation, namely Equifax, Experian, and Trans Union. The government now requires these credit report agencies to provide a free annual credit report for each consumer. This means savings for consumers, because credit reports used to be charged a fee. Additionally, the Big Three also had recently agreed to pay $2.5 Million as settlement for FTC charges on Fair Credit Reporting Act violations.

The Equifax credit report company prides itself to generate accurate credit reports that are free from fraud. Experian’s company website contains more information on credit report to help consumers improve their scores by understanding the basics of credit review. Trans Union is known as a national repository for consumer credit histories. The company currently offers unlimited Trans Union credit reports for a period of 30 days for free. It is important to know that there are other agencies on the market that process credit reporting services as well. Online credit reports can be processed in a matter of minutes with these other agencies.

For people with a tarnished credit report, somewhat legal practices have been established. An example is a seasoned trade line. Consumers with excellent credit reports offer a seasoned trade line to those with a bad credit history. A seasoned trade line is also called piggybacking. It is a method of allowing people with bad credit to use a credit card for a fixed fee. The main benefit of this practice is the addition of an account of outstanding credit history to a consumer’s credit report. This raises the credit score of a person with bad credit. Some people might go this way for credit report repair. There are significant risks involved, but this is technically legal. However, credit reporting agencies claim otherwise.