When someone applies for credit, the lender nearly always obtains at least one credit report or credit score to check the applicant's creditworthiness. Three major credit reporting agencies provide this information for a fee.
Identification
Equifax, TransUnion and Experian are the three major credit reporting agencies. They maintain electronic records about the amount of credit each consumer has along with the payment record.
Function
The three agencies function very similarly. Many lenders use a combination score, compiling results from all three, while others rely on one credit bureau. The preferred bureau can vary by state.
Yearly Free Report
These agencies normally charge a fee to provide reports, but the federal Fair Credit Reporting Act requires each of these agencies to provide a person with a free copy of her own credit report upon request once a year.
Credit Denial Free Report
The agencies also must provide a free copy of the credit report if a person was denied credit in the past 30 days, as long as a credit report was used in the decision.
Contacting the Agencies
Up-to-date contact information for these agencies can be found online. See the Resources section for a link to a site with current information for all three.
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