A person's character, reputation, and lifestyle are often judged based on a credit report. Various corporations and entities report to credit bureau agencies and these reports can help or hurt an individual's credit. A person's credit report is used to analyze financial history and often determines past and present fiscal responsibility. There are three major prominent reporting agencies that constitute the credit bureau industry--Experian, TransUnion, and Equifax. These three agencies can help an entity determine if a person is credit worthy.
Rental Agencies
Apartment and rental agencies are one of the most common entities to report to credit bureaus. To protect themselves from potentially risky tenants, many states have a rental or apartment agency that reports tenants who have not fulfilled rental or lease obligations to the credit reporting bureau. Landlords often use a person's credit report to evaluate a rental application. To keep public records up-to-date, the court system furnishes an individual's past residences, legal name, birthdates, and other pertinent information to the credit reporting bureau as well.
Car Dealerships
Car dealerships also report to credit bureau agencies. These dealerships will report if a person is successfully making payments on a monthly basis or if repossession has occurred due to delinquent payments. Although employers may pull a person's credit report, they do not report to credit bureau agencies. These credit pulls will fall under a section of the credit report called "recent inquiries." Recent inquirers remain on a person's credit report for up to one year and rarely affect the credit score.
Banks
Banks are the most common entity to report to the credit bureau. Banks issue three main credit lines that are regulated and reported--mortgages, loans and credit cards. Delinquent, late payments, and foreclosures can cause irreparable damage to a person's credit score, however, a consistent payment history significantly helps a person build excellent credit history.
Government Debt
According to the Child Support Enforcement Agency, parents who are delinquent on child support payments are also reported to the credit bureau. Other unpaid debts to federal and government agencies are listed on credit reports as well. When an individual has a debt with a lender or rental agency for an extended amount of time, that debt is normally sold to a collection agency. The collection agency then reports to the credit bureau each month.
Inaccurate Credit Reports
Many people suffer from inaccurate information on their credit report which can cause both financial and emotional harm. Removing inaccuracies often requires a lot of energy, evaluation and time but can save an individual financial difficulties in the long term. Every individual is entitled to a free copy of her credit report every 12 months, and can use this free copy to check for inaccuracies.
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