A: There are three major credit bureaus—Equifax, Experian Experian plc is a multinational consumer credit reporting company. Experian collects and aggregates information on over one billion people and businesses including 235 million individual U.S. consumers and more than 25 million U.S. businesses. Based in Dublin, Ireland, the compan…Experian
Full Answer
Who collects and reports credit information about me?
Q: Who collects and reports credit information about me? A: There are three major credit bureaus—Equifax, Experian, and TransUnion—that gather and maintain the information about you that is included in your credit report. The credit bureaus then provide this information in the form of a credit report to companies or persons
What information is used to calculate my credit score?
The information in your credit report is used to calculate your credit score. A credit score is calculated based on your: payment history balances outstanding length of your credit history applications for new credit accounts types of credit accounts (mortgages, car loans, credit cards)
Why do credit scores vary from one credit bureau to another?
Credit scores provided by the three major credit bureaus -- Equifax, Experian and TransUnion -- may also vary because not all lenders and creditors report information to all three major credit bureaus. While many do, others may report to two, one or none at all.
Which credit report do creditors and employers use to check credit?
You won't know which credit report a creditor or employer will use to check your credit. Credit reporting agencies (CRAs) collect and maintain information for your credit reports. Each CRA manages its own records and might not have information about all your accounts.
What is a credit score quiz?
The Credit Score Quiz and accompanying website, creditscorequiz.org, are informational tools developed by the Consumer Federation of America and VantageScore. The two organizations developed the quiz and website to increase consumer knowledge about credit scores and how to improve them. Earlier this year, we asked the Opinion Research Corporation to administer this quiz to a representative sample of 1,000 adult Americans. The quiz results indicate that many Americans could improve their credit score knowledge and ability to manage their scores. We encourage individuals to take this quiz and urge teachers and other educators to utilize it in financial education programs. CFA is a nonprofit association of more than 250 nonprofit consumer groups that was established in 1968 to advance the consumer interest through research, education, and advocacy. Learn more about CFA at consumerfed.org. VantageScore is a predictive generic credit scoring model created by Equifax, Experian, and TransUnion. With VantageScore, lenders can accurately score millions of Americans who were previously unscorable, opening doors for many creditworthy borrowers. Learn more about VantageScore at VantageScore.com.
Why do mortgage companies use credit scores?
1. The answer is g: All of the above. Mortgage lenders and credit card issuers often use credit scores to help decide whether they will extend credit and, if so, at what price. In most states, many auto and home insurers use specialized credit scores to help determine annual premiums. Cell phone companies, electric utilities, and landlords may use credit scores to decide whether they will require a security deposit and, if so, how large it should be.
What does the Federal Law require mortgage lenders to disclose?
Federal law requires mortgage lenders to inform applicants of the generic scores these lenders use in evaluating loan applications. It also requires mortgage and consumer lenders that use generic scoring models to disclose a credit score when a consumer is not offered the lowest interest rate or best terms available.
What are generic credit scores?
Consumers have generic scores, often developed by the three national credit bureaus, which are made available by these credit bureaus, by FICO, by some lenders, and by some independent websites (such as CreditKarma.com, Quizzle.com, and Credit.com). These scores give consumers an idea of their general credit risk, whether they can obtain credit, and whether they will be charged subprime rates. Consumers who apply for credit also have scores computed by individual lenders. But even when different lenders use the same score, they may charge different rates, so it is important for borrowers to shop around.
What is the most common credit score range?
7. The answer is d: 700. Scores above 700 – the most common credit scoring scale range is 300-850 – are usually considered by lenders to indicate low credit risk, while scores below the mid-600s are often considered to indicate some or great risk. Thus, those with low scores are much more likely to be denied credit or charged high, subprime rates. However, it is important to recognize that scoring models may use other scales, so it’s essential to know where a score falls on its model’s scale range.
What is the Consumer Financial Protection Bureau?
12. The correct answer is c: The Consumer Financial Protection Bureau, which helps consumers resolve many types of complaints about credit reports and credit scores. But before filing a complaint with them at www. ConsumerFinance.gov/Complaint, the Bureau recommends filing your complaint and obtaining a response from the credit bureau or other company with which you are dealing.
Can multiple inquiries lower your credit score?
An inquiry after this window has closed may be considered a second inquiry, so could lower one’s credit score. But keep in mind that multiple inquiries rarely lower a consumer’s credit score as much as one missed loan payment.
What factors are used to calculate credit score?
Payment history, the number and type of credit accounts, your used vs. available credit and the length of your credit history are factors frequently used to calculate credit scores
What credit score do lenders use?
In addition, lenders may also use a blended credit score from the three major credit bureaus.
Why does my credit score vary?
Credit scores will vary for several reasons, including the company providing the score, the data on which the score is based, and the method of calculating the score. Credit scores provided by the three major credit bureaus -- Equifax, Experian and TransUnion -- may also vary because not all lenders and creditors report information ...
What are lenders looking for in credit?
Another factor lenders and creditors are looking at is how much of your available credit – the “credit limit” – you are using. Lenders and creditors like to see that you are responsibly able to use credit and pay it off, regularly. If you have a mix of credit accounts that are “maxed out” or at their limit, that may impact credit scores.
How long does it take for a credit inquiry to be considered a hard inquiry?
However, if you are shopping for a new auto or mortgage loan or a new utility provider, the multiple inquiries are generally counted as one inquiry for a given period of time. That period of time may vary depending on the credit scoring model, but it's typically from 14 to 45 days.
What is included in your payment history?
Your payment history also includes details on bankruptcies, foreclosures, wage attachments and any accounts that have been reported to collection agencies.
Do you report to two credit bureaus?
While many do, others may report to two, one or none at all. In addition, the credit scoring models among the three major credit bureaus are different, as well as those used by other companies that provide credit scores, such as FICO or VantageScore. The types of credit scores used by lenders and creditors may vary based on their industry.
Where do credit bureaus get their information?
A: Credit bureaus get information from your creditors, such as a bank, credit card issuer, or auto finance company. They also get information about you from public records, such as property or court records. Each credit bureau gets its information from different sources, so the information in one credit bureau’s report may not be the same as the information in another credit bureau’s report.
How long does it take for a credit report to be investigated?
A: If you submit your dispute through a credit bureau or directly to the company or person that provided the incorrect information to the credit bureau, your dispute must be investigated, usually within thirty days. If you provide additional information during the thirty-day investigation, that investigation period may be extended an additional fifteen days in some circumstances. When the investigation is completed, either the credit bureau or the company or person that provided the incorrect information to the credit bureau must give you the written results of its investigation.
What to do if you find errors on your credit report?
A: If you find errors in your credit report, you may dispute the information and request that the information be deleted or corrected. To do so, you should contact either the credit bureau that provided the report or the company or person that provided the incorrect information to the credit bureau.
Why is credit report important?
A: Your credit report is important because lenders, insurers, employers, and others may obtain your credit report from credit bureaus to assess how you manage financial responsi-bilities. For example:
What are the three major credit bureaus?
A: There are three major credit bureaus—Equifax, Experian, and TransUnion—that gather and maintain the information about you that is included in your credit report. The credit bureaus then provide this information in the form of a credit report to companies or persons that request it, such as lenders from whom you are seeking credit.
