What is a credit bureau?
A credit bureau maintains information on consumers’ credit histories – everything from loans and credit cards to your credit score, as well as information on your identity, payment habits and your public record.
There are 3 major US credit bureaus: Experian, Equifax and Trans Union. They sell credit reports to credit grantors, such as banks, financing companies and retailers, who then use the reports to determine if you are creditworthy.
How do the credit bureaus obtain information?
Credit bureaus obtain identification and credit information from credit grantors, such as banks, retailers, and collection agencies. Bureaus obtain monetary-related public record information directly from the court systems.
What information impacts my credit score?
Generally, credit scores are affected by elements in your credit report, such as:
- Number and severity of late payments
- Type, number and age of accounts
- Total debt
- Recent inquiries
Credit bureau-based scores cannot use demographics prohibited under the Equal Credit Opportunity Act, such as race, color, religion, national origin, gender, age, marital status, receipt of public assistance, or exercise of rights under the Consumer Credit Protection Act. Scores used by individual lenders may use such elements as income, occupation and type of residence in determining their own custom credit score.
How long do the credit bureaus keep my credit information?
Credit bureaus keep your personal credit history for 7 to 10 years.
How do I dispute inaccurate information on my credit report?
You have the right to dispute any misinformation on your credit report. You should first contact the creditor directly to resolve any issues. You may also contact credit bureaus directly.
What do I do in case of credit fraud or identity theft?
If information on your report appears to be fradulent, contact the credit bureaus immediately. They will help you identify and stop fraudulent activities. You will also need to inform your creditors and request they immediately stop all incoming transactions.
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