What do credit bureaus do?

| December 15, 2011 | 0 Comments
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It would not be an exaggeration if it is said that the credit bureaus through one way or the other, dictate the financial standings of several people.  This brings up the question, what do credit bureaus do? Presently, a lot of people have missed out on opportunities of getting loans or even securing good paying jobs due to the fact that their credit history is poor. This is where the credit bureaus come in. So, simply put, a credit bureau’s work is just to gather and interpret data relating to your credit history. There are three main bureaus which are Equifax, Experian and TransUnion.

What they do is collecting consumer information from varied sources for several reasons which includes but not limited to compiling a report on a given person’s credit. What ever bills you have paid and the ones you have not paid, loans granted and several other financial transactions are all listed in your credit report which is compiled by these bureaus. I hope this is gradually answering your question, what do credit bureaus do? Aside from the above mentioned, the bureaus also, with the information gathered about you, are able to determine if you are credit worthy or not. With the verdict passed, lenders and other potential creditors have a complete overview of your financial history and it becomes a matter of personal discretion whether to grant you a loan or not based on the results of your credit report.

You should also know that with the information disseminated concerning your credit score, it is used by lenders and creditors in determining the interest rates you are expected to pay on a given loan. This makes it necessary that you check your credit score at least once in a given year. The reason for this is that since the different bureaus source their information from different sources, there is the possibility of false information being given about you and the earlier you find out about this and sort same out, the better for your credit history and credit report. Now that you have gotten the answers to the question, what do credit bureaus do, work hard to ensure that your credit score stays positive all year round.

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Category: Blog, Credit Bureaus, Credit Resources

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