How to properly collect your credit history

Photo: depositphotos.com

When you check your credit report, keep in mind some things you should know about. To collect your full credit history, it is not enough just one rating indicator.

The Consumer Financial Protection Bureau (CFPB) fined the credit bureau Experian on $ 3 million for the company making false claims about using credit scores to consumers.

Experian did not recognize any violations, but agreed to pay the fine. This is happening against the background of violations of two other major credit reporting agencies in January. Then the bureau fined EQUIFAX и TransUnion a total of $ 23 million to settle the claims of deceived customers.

What did they do wrong?

They positioned their credit scores as the results that banks look at before giving you a loan. However, lenders typically use multiple credit reports rather than just one, the CFPB said. But do not forget that lenders “partially depend on the assessment when deciding whether to grant a loan.”

CFPB obliged credit agencies to be more accurate in what they say to customers.

What does this mean for Americans?

You need to know that the credit report you see does not necessarily influence the bank's decision whether to give you a loan or not. “In addition to the credit scores that lenders actually use, several companies have developed so-called 'educational credit scores' that lenders rarely use,” the CFPB said. “These metrics are intended to inform consumers.”
In other words, your credit scores can still be a useful tool to see how you look in the eyes of lenders.

The Americans Credit Report reflects borrowing history with 3 credit bureaus: Equifax, Experian и TransUnion.

Everyone has the right to a free copy of their 1 credit report once a year from each of the largest credit reporting agencies in 3. This is easy to do with AnnualCreditReport.com.

A credit report is a summary of your credit history, while a credit score—a number that typically ranges from 300 to 850—is an assessment of how your creditworthiness relates to your credit report.

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