Who are the three major credit bureaus? What effect do these have on my
life? Find the coolest information on how these
agencies work and why a dispute letter will help with your credit report below.
These agencies are--Equifax, Experian and TransUnion. They are the ones used most often to check your creditworthiness.
If you're applying for credit to buy a house or a car, these agencies have a great affect on your life. How? Creditors use them for "pulling" your credit report and checking out your credit history. Many times all three of them are used when applying for a home loan. They fit together like pieces to a puzzle.
Depending on what your credit history looks like, they can make your
life pleasant or miserable. The
Fair Credit Reporting Act,
does limit how long they can make your life miserable.
Let's say you had a bill you didn't pay and it was given to collection, your report would reflect this collection for seven years. See how it can affect you? There are many items that can stay on your report for a long time. Things like a bankruptcy or any type of derogatory credit item can be listed on your report that a long time. There are some items that can be listed for ten years.
So this is no laughing matter, its serious.
Since it is a serious matter, try to get these matters taken care of in a timely manner. If you see items that shouldn't be on there or you know you have handled already, you can "dispute" these online, or you can make a phone call, or by mail using a dispute letter.
Recently, a family member found they had a credit card reported they never applied for. By doing a dispute, it was discovered they never applied for this. By taking quick action, this item was removed.
As a first time home buyer, you want these agencies to report your credit history with an "A+" if possible. That way you can have the best programs to choose from offering you the best interest rate.
Go to House Buyer Solutions Home Page.
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