What is a Consumer Reporting Agency?
A consumer reporting agency is a company that compiles and keeps records on consumer payment habits and sells these reports to banks and other companies to use for evaluating creditworthiness. Can sometimes be called a credit bureau. Although credit bureaus are private organizations, consumers are entitled to free credit reports each year from each of the three major credit agencies. These companies pull together reports called credit reports. These credit reports contain many things that include:
-Personal Data: name, social security number, address, and employment information
-Accounts history: detailed history of all active credit accounts.
-Delinquent accounts: history of all accounts that are delinquent also includes personal information. Also can sometimes be the only accounts reported on a consumer reporting agency
- Public records; bankruptcies, judgments, liens, divorces, child support arrearages, and criminal records.
- Inquiries: records of all who have requested a copy of the credit report within a year.
What some people don't know about credit...
If your credit score is low then you are less likely to be eligible for things such as taking out a loan, buy a car, going out for a mortgage and buying a house. These things can all be risked when playing with credit scores.
A way that your credit can be damaged would be if you take out loans and don't pay them back, or if you open multiple credit cards and not pay them back.