Who uses Credit Scores and how?
A number of credit reporting agencies offer consumers with credit evaluation. Three of these agencies are most popular and widely used by consumers. These agencies have different names for FICO scores. These are:
| Credit Reporting Agency |
FICO Score |
| Equifax |
BEACONŽ Score |
| Experian |
Experian/Fair Isaac Risk Model |
| TransUnion |
EMPIRICAŽ |
|
|
We now list down information for each of these credit reporting agencies as well the information laid out in there respective credit reports.
Equifax
Equifax primarily sells consumer credit reports and related analytics to businesses in a range of industries. The business customers for Equifax range from retailers, insurance firms, healthcare providers, utilities, government agencies, as well as banks and other financial institutions.
Experian
Through Experian you can track changes against your accounts. By checking your most recent credit information, you eliminate your chances of preventing your valuable financial and personal information stolen by anyone.
Apart from catering to day-to-day consumers, Experian also offers its business consumers to unlimited access to credit reports.
Transunion
Transunion uses the L2C Thin File Model to identify creditworthy prospects among previously un-scoreable consumers and predict the likelihood of their accounts becoming 90 days or more delinquent in a 12-month period. This insight increases consumer loyalty and offers better credit terms or first-time credit to underserved buyers, and improve operational efficiency through real-time credit decisions and reduced manual review costs.
Structure of a Credit Report
The credit report of generated by these agencies consists of more of less the same information:
- The top of your credit report consists of: your name, report number and the date the report was prepared.
- The next section is called as the "Potentially Negative Items" section. This is divided into two areas. The first area contains public records such as bankruptcies, tax liens and civil judgments entered against the consumer. The second is called" Credit Items" and lists collection and charge-off accounts.
- Next up is the "Accounts in Good Standing" area. This area lists present accounts in which your payments are current and past accounts that have been closed in good standing.
- Following the section is the "Requests for Credit History" segment. This section is divided into 2 areas: "Requests Viewed by Others" and "Requests Viewed Only by You."
- Personal information includes full name, current and previous 3 addresses, spouse's name (if applicable), Social Security number, employer and your latest telephone number.
- Review the "Personal Statement" section. Personal statements made to your credit report are added by you. These statements are generally made if you have been a victim of credit fraud or identity theft.
- Employer information includes names and addresses for current and past employers, your job position and title.
- Comprehend the public records section. Any public records such as tax liens, bankruptcies and civil judgments are reported in this section.
- Identify the negative items section. Negative items are reported in this section. These include collections, charge-offs, defaulted loans, repossessions and foreclosures.
- Understand the section containing trade lines. Trade lines include payment history, high credit limits and credit balances for your current accounts. Accounts that have been closed in good standing also are reported in this section.
- Recognize the credit inquiries section. This is the final regular section of credit report. Any credit inquiries over the past 24 months are reported to this section.
- Be aware of statements. Any statements or special requests you have made regarding your credit report are printed at the end of the report. Some examples are a statement that you have been a victim of identity theft, or a request the company contact you before an inquiry into your credit is conducted.
