Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected

Lenders Prioritize Credit Report

By Faye Mergel
Published: Tuesday, October 13th, 2009

Industry experts note that there are a lot of people who are not aware of the importance of their credit report. According to them, many borrowers think that their job status and income are the most important factors that lenders look into during loan application. But creditors give greatest emphasis on credit reports since they determine how likely a deal will turn out successfully, experts say.

Lenders Prioritize Credit Report Creditors say that they have encountered people on several occasions who do not know about their credit report. These potential borrowers will then be surprised when they find out that they are being rejected because of their credit report since they have never even looked at it, lenders add. This prompted industry experts in launching a consumer education campaign online, aimed at letting the general public know about lesser known things that matter in their debt management.

Experts say that American consumers must be informed about the roles that credit reporting agencies (CRAs) play in their lives. Experian, TransUnion, and Equifax are noted by experts as the three largest CRAs servicing America. They say these bureaus keep track of a person’s credit activity: how much debt he owes, how much credit he has, and how well he pays creditors back. Experts remind consumers that these companies are profit organizations, so they require fees for services they offer such as providing a credit report. There is no federal law limiting prices of CRA services but competition among them has kept costs low, analysts note.
On the average, a credit check costs 15 dollars for each bureau. However, a consumer can pull out his report for free. Fair Credit Reporting Act (FCRA) guarantees consumers to one free report from all major CRAs once a year. Specialists advise consumers to visit annualcreditreport.com to retrieve their free report online. They say requests can also be made through phone or mail but it usually takes two weeks before a person can have their file.

Consumers are advised to be particularly mindful of the accounts and enquiries section of a report. The account section contains debts procured by a person, including car loans, mortgage, and card debts. “Enquiry” deals with who peaked into a person’s account. Lenders and employers are the top inquirers with CRAs, since their decisions are greatly influenced by the credit report of a person. Landlords, government bodies, and insurers also take interest in a person’s CRA file. Specialists say those two sections have the greatest influence on a person’s reputability, which could determine his financial future.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.