Monday, July 30, 2007

Definition of Credit Rating Agencies

Credit reporting agencies compile information regarding consumer credit files, which are forwarded to the agencies by a number of lenders. The credit reporting agencies will forward this information to those same lenders for the purpose of determining credit worthiness. There are others who use information from credit reporting agencies as well.

Lists

    Credit reporting agencies sell lists to companies that send out pre-approved credit and insurance offers to consumers.

Update

    Information from individual consumer credit files is updated by credit reporting agencies during the first week of every month.

Transmission

    Credit reporting agencies receive information from creditors via a secure HTTP connection. A creditor needs to be able to transmit information using a Metro 2 format.

Free Credit Report

    Consumers can contact the credit reporting agencies once per year to get a free copy of their credit report (see Resources).

Major Agencies

    There are three major credit reporting agencies: Equifax, TransUnion and Experian.

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