Consumers often make the mistake of assuming that Credit Reporting Agencies are State, Federal or Government operated. The truth is, the credit reporting agencies are not associated in any way with the Government. The credit reporting companies are in business to make a profit by supplying consumer's (your) credit information to lending institutions, employers, insurance companies, auto dealerships, landlords, etc.... and anyone else willing to pay for your personal information.

Many good, honest, hard-working people have lost hope due to their credit profile. The hope for a better job, lower interest payments and the feeling of pride that comes with home ownership.

How the Information Gets There

A credit bureau is a clearinghouse for credit information about consumers. There are over 1,000 local and regional credit bureaus around the country that gather information about your credit habits directly from your creditors.

Typically, these smaller local and regional bureaus are affiliated with one of three large national credit bureaus -- Equifax, Experian and TransUnion (see below).

For example, let's say you apply for a credit card and provide the card company with all of your personal information, such as your name and address, your previous address (if you haven't lived at your current residence for more than two years), your employer, other credit cards you have, etc. The credit card company then contacts a credit reporting agency (CRA) and reviews your credit report. If the company approves your application for a credit card, then the information you've supplied is forwarded to the CRA. That credit card company also reports your payment history to the CRA, so that becomes part of the report. The CRAs also access information about you from public record information such as court records.

All of the transactions you have that involve credit are reported monthly to CRAs by the merchants or creditors you deal with. Most large creditors report this information to all three national credit bureaus (CRAs). Some smaller lenders or merchants, however, may only report the information to one. For this reason, your report from each CRA may not be the same. You might get a copy of your report from Experian that does not include an account that shows up on your report that is maintained by TransUnion. For this reason, it is wise to review copies of all three reports.

Obtaining Your FREE Credit Report

The difference between a good credit score and a bad credit score can be huge. A great portion of a person’s life can depend on a credit score, it can mean the difference between getting a mortgage or not, or finding employment with an ideal employer or not. With so much riding on a certain credit score, how can we all be sure that it is fair? How do we know that the credit reporting bureaus are doing their jobs correctly?

That’s where the Federal Trade Commission comes into play. The FTC is the agency of the US Federal Government that ensures consumers are being treated fairly and they take a serious stand on the issues of credit. They enforce the Fair Credit Reporting Act and also give consumers advice on how to best use and maintain a healthy credit file.

The best way for individuals to ensure that their credit reports are fair and accurate is to check them. With millions and millions of consumers in the US using credit every day, there are bound to be mistakes made by the credit reporting bureaus no matter how determined they are in their efforts to report with 100% accuracy. As the new century dawns and information becomes the essential commodity in our world, your personal information is of vital importance to your success; YOU need to ensure that your credit score is where it should be.

Consumers are now afforded the opportunity to request their credit reports from the three major bureaus and receive their credit scores at the same time. Individuals can now see what creditors have seen for years: Get your free credit report.

The Fair and Accurate Credit Transactions Act (FACTA) has rolled out the right to each consumer for one free copy of his or her credit report from each of the three credit bureaus per year. Check out www.annualcreditreport.com or call 1-877-322-8228.

Credit Bureaus

Equifax – www.equifax.com

To order your report, call: 800-685-1111 or write:

P.O. Box 740241, Atlanta, GA 30374-0241

To report fraud, call: 800-525-6285/ TDD: 800-255-0056 and write:

P.O. Box 740241, Atlanta, GA 30374-0241

Experian – www.experian.com

To order your report, call: 888-EXPERIAN (397-3742) or write:

P.O. Box 2104, Allen, TX 75013

To report fraud, call: 888-EXPERIAN (397-3742)/ TDD:

800-972-0322 and write: P.O. Box 9532, Allen, TX 75013

TransUnion – www.transunion.com

To order your report, call: 800-916-8800 or write:

P.O. Box 1000, Chester, PA 19022

To report fraud, call: 800-680-7289/ TDD:

877-553-7803 and write: Fraud Victim Assistance Division,

P.O. Box 6790, Fullerton, CA 92634-6790