It is evident that credit scores depend on an individual’s previous and recent financial status. But who is in charge of keeping track of all the information about one’s financial condition? The answer to this question is quite clear: the credit reporting agencies.
These are companies that have the mandate to gather and compile data that revolves around one’s borrowing history and financial status. They are also referred to as consumer reporting agencies or credit bureaus.
What Does a Credit Reporting Agency Do?
Simply put, a credit agency uses your financial information to compile your credit report and your credit score. These numbers have a significant effect on your future financial ability. The higher your credit score is, the more offers you will get from other credit agencies and banks. If you have too many debts, your credit score could prevent you from doing simple things like taking out loans, leasing cars, and renting apartments.
These are the agencies widely known to most people:
- TransUnion
- Experian
- Equifax
There are other agencies, but only the three reporting agencies mentioned above are nationally accepted. Everything is evolving, and so is the credit industry.
Other Credit Agencies
Previously, multiple companies were dealing with credit history. The companies involved developed regional interests and planned to serve clients as regional powers. For instance, TransUnion majored in the central part of the country while Equifax managed the South and East parts. Experian was left to cover the West. They created a brand for themselves that helped them stand out.
Do the Three Reporting Agencies Have Any Differences?
The three nationally recognized agencies offer the same services when it comes to overall credit monitoring services. Each agency independently provides other services. If one seeks professional help from other credit reporting agencies other than the three mentioned, they stand a chance of getting completely different functions. These differences in reports could trigger credit score and history irregularities.
Are There Limitations to Requesting Credit Reports from an Agency?
The Fair Credit Reporting Act allows clients to request for one credit report from each agency annually, at no cost. Anything above the free report requires one pay up a certain fee for each report obtained from every agency. You can also get your credit report from your bank or through third-party apps. Most of them are free or will give you a free trial so that you can request your credit scores. It’s important to check this at least once a year and make sure there are no unrelated charges.
How Can a Bankruptcy Attorney Help?
If you’re in debt, it’s best to turn to professional help. At E. Orum Young, our lawyers have performed the most bankruptcies in Northeast Louisiana and have served the community for over 30 years. Call us at 318-450-3192 or fill out our contact form to speak to an attorney about your case. There are many different options for consolidating your debt, and a professional can help you decide what to do to avoid serious consequences, like poor credit and wage garnishment. Take some of the stress off by contacting a bankruptcy lawyer in Louisiana today.