How To Deal With Credit Bureau?

Good credit is crucial in today’s economy. You’re using your credit in almost everything you purchase—getting a car, applying for a loan, getting a credit card, and many more that require a good credit score. Maintaining your above-average credit score can be challenging if you are not responsible for your finances. Credit companies that work are just around the corner if you need any assistance with your credit report. You can check your free credit report in any credit bureau.

What is a credit bureau?

A credit bureau is a company that collects and compiles information regarding your credit history. There are three major bureaus in Canada, TransUnion, Experian, and Equifax. They gather information in the form of credit reports and provide it to the banks or lenders as one way to assess your creditworthiness.

Each lender has different criteria for denying and approving your credit request. So the decision for your approval comes from your lender or creditor, not from the credit bureau. The credit bureau only collects information from lenders and creditors and compiles them on your credit report.

Not all creditor reports to all credit bureaus. That is the reason why you have different information on different bureaus. Make sure to check for each bureau.

What should you do if you get your credit report?

You have a free credit report from bureaus every 12 months. Pulling your credit after the free credit report given by bureaus will damage your credit score is a myth. On the other hand, checking your credit report will help you boost your credit score.

Check your information.
  • Check if your name, Social Security number, or permanent address are correct and updated. Suppose there are any payments that your lender missed updating. Dispute any errors because they might damage your credit score.

Also, errors can give lenders the wrong impression. You might not get approved for a loan, or they will charge you a higher interest rate. That is the impact of having errors on your credit report.

Your credit report contains the following:

1. Your personal information.

– Your name, current address, and social security number are part of the personal information that lenders will see if they check on your credit report.

2. Your credit history.

– past payments of debts, credit cards, and other purchases can be seen on your credit history. 

3. public information.

– there are instances when you apply for a job, and your employer requires your credit report. They can access your credit report with your approval, of course, and this part of your credit report is what they will see for this purpose.

When you apply for a loan, your lender may request to view your credit report. It is called Hard Inquiry. It is a loan process that lenders go through to check your creditworthiness. That request will stay on your credit report, which usually impacts your credit score.

If you have questions about specific debt, you can mail a written request to the credit bureau that they investigate that particular debt. Legally, any discrepancies on your credit report must be documented by the credit bureau. Otherwise, they must remove the entire thing if they do not respond within 30 days.

If you are busy and don’t have time to go through this process, you can consult a credit repair agency to do the work for you. They render services with fees.

Why should you monitor your credit report?

Credit bureaus offer Credit Monitoring services. You can avail of this service if you think you are a fraud victim or have been affected by a data breach. Someone might be using your name and causing damage to your credit score, and you have no idea about it.

They might charge you for this service, but some institutions offer it for free.

Keep your information private. Some frauds offer free credit reports, and you might be tempted to give out information that may be used against you.

The importance of checking your credit report:

1. It helps you better understand your current credit position.

2. It helps you be aware of what lenders may see.

3. Detect inaccurate or incomplete information.

Check your credit report at least every six months. That way, you are updated and can see errors sooner.

In conclusion:

Credit bureaus do not have a say on your credit. Whether you get approved is not a decision made by the credit bureau. Their sole job is to collect and sell information. They collect data from lenders and assess your creditworthiness.

On the other hand, lenders or creditors have a say if you get approved. They will base your creditworthiness on your credit report. So, maintaining good credit is essential when applying for credit.

If you have a hard time fixing your credit, consult to credit repair business. Make sure to apply to a trustworthy company. Choose a company that will guarantee a credit repair and not worsen it.

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