3-in-1 Credit Reports Explained

You might wonder how your credit scores are computed and who are responsible for the computation. This time, we can talk about the three credit reporting agencies who take full responsibility of your FICO scores; you credit opportunities and your entire life. The three main reporting agencies gather your credit information from merchants, creditors, lenders, banks and financial institutions. If you have not done any credit card settlement in the past, the delinquency will certainly appear on your credit report based on what has been submitted to them.

The credit reporting agencies can also be referred to as credit bureaus. From them, your new credit application would highly depend because they measure your credit worthiness through your credit scores. Financial institutions secure a copy of your credit reports, evaluate it and base their decision on your credit application. Experian, TransUnion and Equifax are credit reporting giants who employ no different process of computing your scores.

However, there are instances when inconsistencies with credit scores happen. The three credit bureaus are all independent from each other. This means that the gathering of information happen in different means. For instance, your past credit card company may have earlier submitted your information to Experian. After some time, you decided to pay off debts from the company which in return has submitted the updated profile to TransUnion. Experian and TransUnion may have different credit information and credit scores. There emanates the inconsistency.

In this case, it is but wise for creditors to check on your credit reports from all three reporting agencies before measuring your credit worthiness. It is also but wiser for consumers to have a copy of their credit scores from each bureau in order to keep close monitoring and comparison of the reports. The three in one credit report could be enough to verify information and check on instances of fraud. When you reduce credit card debt, make sure the payment made appears on the three reporting agencies so that the credit scores may not be far from each other.

The little effort and money exerted on securing a copy of your credit report are greatly compensated by the security you can provide yourself. Credit monitoring is a protection measure you can do to your credit information. As you regularly check on questionable items, you can also prevent instances of fraud from happening or worsening. Once questionable items are not disputed and deleted, your credit scores will stay slow even if you have made credit card settlement.

The smart consumer knows how to protect himself. If you are one intelligent borrower, you should know that monitoring not just one but three credit reports made by independent bureaus is more effective means of protecting your credit information. The rewards of your efforts will not be felt at once because everything runs through a process. However, you should bear in mind that once your scores are improved, great lending and borrowing activities can be expected ahead. Free or sold, secure your three credit reports and improve your chances for huge financial improvements.

By: Lynne Gabriel

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