Credit Bureaus: What You Need To Know - By: Suzy Vanstrusen

Ordering and examining your credit report on a regular basis is very important so you can easily dispute any error or issue. Experts advise consumers to order a copy of their credit reports from credit bureaus to personally check it. What are credit bureaus>? What is the role they play in building a person's credit. How can they help you with your credit issues?

There are many agencies that offer credit reporting but there are only three major credit bureaus in the United States. These are Equifax, Experian and Trans Union. These names are the most trusted credit reporting bureaus that you should be running to whenever you need your credit report. Some people have the notion that all three bureaus are the same. On the contrary, each bureau is a separate company and each one does its credit reporting independently.

You may find that when you order a copy of your report from Equifax, it will not be exactly the same as the report issued from Experian or Trans Union. When you apply for a loan or a credit card, your prospective lender can either inquire your credit history from any one these three bureaus. With this in mind, it is recommended to get a copy of your credit report from all three credit bureaus. This way, you can compare the accuracy of your report and make sure that all errors will be corrected. Thus, when a prospective creditor requests for your credit report, you can be assured that they will be getting correct information about your credit.

The Fair Credit Reporting Act entitles all consumers to receive a copy of their credit reports from each of the three credit bureaus for free. Have you ordered your free credit report for this year? If not, might as well exercise your right and ask for your free credit report now. Also, people who suspect to have been a victim of fraud or identity theft; those who have been denied credit; and individuals who are unemployed and is planning to look for work within the next 60 days can request for a copy of their credit report at no charge. Otherwise, you can order your credit report for a fee of $9.00.

Errors, omissions and inaccuracies are common issues in credit reports. Under the federal law, the three major credit bureaus are mandated to conduct an investigation and make the necessary corrections if a consumer disputes the information recorded in his credit report. Upon receipt of the dispute letter, the credit bureau should contact the creditor involved right away and clarify the matter. Credit bureaus are only given a maximum of 30 days to investigate the issue and give the consumer a response.

In the event that the dispute is proven valid and correct, the credit bureau who investigated the issue will be the one to notify the other credit bureaus so they can have their own reports updated accordingly. The credit bureau will also send the complainant a free updated credit report. However, if the issue hasn't been resolved, the credit bureau will be advising the complainant about the result of the investigation.

Credit reporting is one serious obligation and in the event that a credit bureau has failed to do the its duty, you have the right to file a complaint against it through the Federal Trade Commission.

Copyright (c) 2010 Suzy Vanstrusen

About the Author

Suzy Vanstrusen is a credit analyst and a writer of the website http://www.ezcreditrepairsolutions.com and has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair and credit report score.

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