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What Are The Things I Need To Know About The Three Credit Bureaus?

By Derek Brown
Published: Saturday, November 27th, 2010

The world is in no doubt having a growing dependence in the use of credit card in purchasing any products or services. The advantages of having a plastic card instead of some cash have been very alluring for the customers thus people rely on credit most.

Since it is dominating the market system nowadays not only opportunities are flourishing but also threats and risks. The use of credit card will give one a kind of purchasing power far different from what cash can give the people. If one uses credit card it seemed to be magical and it has a tendency to lead consumers to overspend. You do not literally see your money go away from your hands when you utilize credit cards in purchasing items or services thus you are less conscious about your spending. This is one of the pitfalls of this credit card use and it really can lead to serious debt problems.

Forgive and forget cannot be applied to all credit troubles you have been involved with for your past in this world where credit is pivotal is as important as the present and the future. The credit industry has deeply penetrated the world thus people are measured by their credit worthiness. Well it is all about risk and how risky you can be will be reflected by your credit records. Where does this report come from?

Big businesses can be made in this credit-based economy and as mentioned above they all work with risk assessment. Now taking in risk based on mere instinct will not make good business thus there has to be an objective, educated and reliable basis for this risk assessment to be effective. Hence we have credit histories to which credit scores are generated. There are several credit bureaus to which all of our crediting transactions are being reported however we only have three major credit bureaus that are working on a national basis.

The three are TransUnion, Equifax and Experian. They are independent companies who are not sharing information with each other since they are competitors. With that it can be expected that they will not have the same information about your credit history for instance.

Why is this so? First because lenders are not required to report to all the three major credit bureaus thus some lenders report to just one or two. Another thing you need to understand about this credit bureaus is that they work on a national basis meaning to say that even if you move from one state to another you will always carry with you whatever past you have with your credit lines. In such case you cannot escape a wrecked credit record from your hometown when you decided to move to a new place. You always bring them with you so better work on your credit record and make sure to bring with you good luggage of credit worthiness.

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