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How To Repair Your Credit

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  1. Welcome

    Welcome
  2. The History of Credit
  3. Credit 101
    Understanding Your Credit
  4. Why Is Credit Important?
    1 Quiz
  5. What Is A Credit Score?
    1 Quiz
  6. FICO vs Vantage Scores
    1 Quiz
  7. What Is A Credit Bureau?
    1 Quiz
  8. What Is A Credit Report?
    1 Quiz
  9. What Is Credit Monitoring?
    1 Quiz
  10. Statute of Limitations
    1 Quiz
  11. Derogatory Marks
  12. Getting Started Repairing Your Credit
    Getting Started
  13. Your Consumer Rights and Protection
    6 Topics
    |
    1 Quiz
  14. Obtaining Your Credit Reports
  15. How To Read Your Credit Reports
  16. Disputing Negative Accounts On Your Credit
    Disputing Negative Marks
  17. Credit Repair Mistakes To Avoid
  18. Getting Organized
  19. How To Track Your Results
  20. Analyzing Your Credit Reports For Errors
  21. How To Write A Dispute Letter
    1 Quiz
  22. Mailing Your Disputes
  23. How Disputes are Handled
  24. How to Dispute Collections
    1 Topic
  25. How to Dispute Late Payments
    1 Quiz
  26. How to Dispute Inquiries
    1 Quiz
  27. How To Dispute Charge-offs
  28. How To Dispute Bankruptcy
  29. Student Loan Relief
  30. Identity Theft Relief
  31. Negotiating with Creditors
    1 Quiz
  32. Re-Establishing Good Credit
    Adding Explanatory Statements
  33. How To Build Perfect Credit Scores
  34. How Creditors Evaluate Your Creditworthiness
    1 Quiz
  35. Choosing the Right Credit Card
  36. How To Apply For a Credit Card
  37. Credit Builder Loans
  38. Credit Management
    Becoming An Authorized User
  39. Managing Your Credit
  40. Improving Your Credit Opportunities
  41. How to track your results
  42. How To Remove A Dispute Remark
  43. How to Protect your SSN
    1 Quiz
  44. Toolbox
    Tool Box
Lesson 7 of 44
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What Is A Credit Bureau?

⌛ Video Length — 00:03:20

Lesson Summary


To get familiar with your credit is to get familiar with the entities that report it. This entity is known as a credit bureau.

There are three major credit bureaus: Transunion, Equifax, and Experian.

Contrary to popular belief, credit bureaus are not a government entity. In fact, they are data collectors. Credit bureaus, also known as credit reporting agencies, do two things:

1. They compile your credit history based on your credit accounts, using your Social Security number or other identification information. 

2. They provide your credit information, in the form of credit reports, to lenders and creditors to help them determine your creditworthiness.

They also provide credit reports to you, so you can better understand your credit situation. 

Your credit history, including factors such as your payment history and your amounts owed, are used along with other factors to calculate your credit scores. 

Do the three nationwide credit bureaus make lending decisions?

A frequent misperception about the three nationwide credit bureaus (Equifax, Experian and TransUnion) is that they make lending decisions.

Credit bureaus provide some of the information creditors and lenders use to help them make important lending decisions.

While credit bureaus collect credit information in order to make it available to certain third parties, the decision to deny or approve someone credit ultimately lies with the lender or creditor.

Each lender and creditor has its own criteria.

Where do credit bureaus get their information?

Credit bureaus use different sources for collecting information, and not all third parties report to the three major credit bureaus.

This means that each of your credit reports may contain different information.

Creditors keep the credit bureaus updated with your account status and payment history — two factors that contribute to your credit scores.

Speaking of credit scores, there are many different credit scoring models used by credit bureaus and other entities.

As a result, your credit score may vary between the three nationwide credit bureaus — even if all of your creditors report to all three. While many do, some creditors may report to only two, one or none at all. 

What types of information do they report?

Credit bureaus collect the following types of information:

  • Credit account information, including payment history, balance of an account, when the account was opened, date of the last activity, high credit on the account and the credit limit on the account
  • Debt collections
  • Bankruptcies

It’s important to note some companies may take these factors and others into consideration when evaluating your application for credit.

Things you should know….

Credit bureaus are also required to provide a free credit report annually and in the following instances:

  • You’ve been denied credit or a benefit as a result of information on your credit report within the last 60 days
  • You’re unemployed and seeking employment
  • You’re on public assistance
  • You’re a victim of identity theft

Now that you know about the credit bureaus and the role they play with your credit, let’s explore the credit scores they report.