As
credit increased throughout the country, there arose a great need to issue
reports concerning those who are not a good credit risk as well as those who
are credit worthy. Because of this great need, credit-reporting agencies were
formed several years ago. These agencies, known as credit bureaus, receive
information about consumers from banks, loan companies, credit card companies,
department stores, as well as from other credit and lending sources. Credit
bureaus earn their profits by giving a computer printout showing a financial
and credit profile of any individual. These reports are requested by a lender
or a credit-issuing firm from which you have requested credit.
Lenders will base their acceptance or rejection of your application for credit
based on the information about you in your personal credit report. If your
credit report shows that you have been reliable in the past, then in most
cases credit will be granted. What if your report shows that you have not
been reliable in the past? Perhaps you have been like others in this country
that have encountered circumstances beyond your control, which made it impossible
for you to meet your credit obligations. What if your credit report shows
that you defaulted on a particular account or were constantly late making
payments. This of course can be most embarrassing, and usually leads to credit
denial.
There are over 2,500 credit reporting agencies in the United States. These
agencies sell information about you to banks, department stores, credit card
companies, loan companies, etc.
These credit bureaus keep on file information concerning you and your credit,
but they do not make any final judgments as to your credit worthiness. The
decision is up to the lender, which you have dealt with to decide and report
to the credit bureau.
When you receive a copy of your credit profile, you may find some of the following
information in your report: occupation, place of employment, income status,
residence record, marital history, court and arrest records, and most important,
details on payments of your past and present bills and loans.
You have the right to know what is in your consumer credit report. Because
it is your personal credit file, you should want to know what information
the credit bureau is giving out concerning your name and credit!