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Discuss the growing importance of credit scores and

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discuss the growing importance of credit scores and pro- What Is a Credit Reporting Agency? A credit reporting agency, also known as a credit bureau, is a business that collects information about consumers’ use and management of their credit. It gets its information from a variety of sources including creditors and court records. In turn, it sells its information to creditors, em- ployers, landlords, and government agencies and to anyone else who is legally entitled to it according to the FCRA. Three corporate giants dominate the credit reporting industry. They are Equifax, Experian, and TransUnion. Be- tween them, these companies collect information on nearly every American consumer. Therefore, if you have credit or have ever used credit in the past, each of these companies probably has information about you. The information in the reports being maintained about you by each of the three national credit bureaus is probably not exactly the same al- though much of it may be identical. What’s in Your Credit Record? Your credit record (also referred to as a credit file, credit report, or credit history), contains four basic types of information: Warning Credit Reporting Agencies, Reports, and Scores 157 vide tips for raising yours.
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Credit Hell 1. Identifying information, including your name, ad- dress, Social Security number, the name of your spouse, and the name of your current employer. 2. Information about your credit accounts. This section of your credit report provides a detailed history of how you have managed your accounts over time. Among other things, it indicates the date you opened each account, if and whenyouh av eever exceeded your credit limits, your current account balances, your monthly payment amounts, how often you have been late with your account payments, whether any of your accounts have been sent to collections or written off, and so on. This is the heart of your credit record. 3. Public record information including information about any bankruptcies you may have filed over the past 10 years, unpaid tax liens, court judgments against you, and so on. 4. Information about any inquiries regarding your credit record information. The inquiries could be the result of your applying for new or additional credit, or be- cause a creditor or insurance company wants to send you a pre-approved offer. The inquiries could also exist because your current creditors checked out your credit history to determine whether they should change the terms of your accounts, increase your credit limits, or some other action. Credit reporting agencies get most of their informa- tion from their subscribers—the businesses that pay credit bureaus for the right to regularly access the information in
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companies like MasterCard and Visa, mortgage lenders, and large retailers, provide credit reporting agencies with regular monthly updates regardingthes ta tu
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  • Spring '12
  • zinctolg
  • credit score, Credit history, Fair Credit Reporting Act, CREDIT REPORTING AGENCY, credit reporting agencies

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