You are surely aware that the three major credit reporting agencies (CRAs), also known as the credit bureaus, have a lot of power over whether you can get financing for vehicles, homes, and other credit transactions. But you may not know how the CRAs get the information for your credit report, or what your credit score really means. Since consumer credit history, scores, and reports are extremely important in your life, you need to make sure that you understand them and what you can do about them if they are not reporting accurately.
When you apply for credit, the potential lender goes to the three main credit bureaus, (Equifax, Experian, and TransUnion), to review your credit report. There are many other CRAs as well, but these three have emerged as the primary sources of credit reports. Your credit report contains information about your bill payment history, current loans and debts, and other financial information. It usually also states your current address and the name of your employer, as well as past addresses and employers. Finally, a credit report may include whether you’ve been sued in the past or filed for bankruptcy. Negative information about you can stay on your credit report for seven to ten years.