Question:

What are the consumer credit bureau rating services used for?

Answer:

The three major US credit reporting companies provide consumer credit bureau rating services to lenders to assess particular borrowers - if they are good or bad risk.

Experian, Equifax and TransUnion are the three major US credit bureaus providing valuable credit rating services. Recently a fourth credit bureau has sprung out - Innovis is often called the secret 4th US credit bureau.

All US credit reporting companies (CRCs) collect and evaluate borrowers' data. They extract a number, FICO or Vantage based, upon which lenders make a decision about approving a loan.

Borrowers need the consumer credit bureau rating services to obtain a credit score to use in mortgage applications. Lenders need the FICO number to determine credit risk, and lenders, employers and landlords report to the credit bureaus about certain financial transactions of consumers. Credit score reporting services are paid, while a credit report can be obtained for free once a year from each CRC.

Use Credit Bureau Services To Improve Your Score

Fact is credit bureaus can be lousy when maintaining and updating borrowers' files. Pulling reports from the consumer credit bureaus means you will see different items reported on each, some of which outdated or wrong. Borrowers can ask for one free credit report per bureau per year. Use it to clean up wrong items and improve your credit.

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