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There are 3 main credit bureaus Trans Union,
Experian (once known as TRW) and Equifax. Each of
these Credit Bureaus collect reports directly from
creditors. Creditors do not always report
information to all of the credit bureaus. That means
that all three of your credit reports may not look
the same.
The Credit Bureaus use your credit report for
various purposes. The primary 3 credit bureaus keep
information about your repayment practices and your
debt. They allow businesses to use this information
to make inquiries about you.
There are two types of inquires that can be made
“permissible purpose” and a “hard inquiry”.
“Permissible purpose” gives a lender a snap shot of
general information. This is how the credit card
companies can send you credit card applications in
the mail and be able to market to your specific
credit situation. “Hard Inquiry” requires your
permission and is marked in your credit report. It
gives all of the information that the credit bureau
has available. Check your credit report for hard
inquiries, you should know every lender listed. If
there are many you do not recognize contact the
credit bureau. This could be a sign that someone
maybe trying to apply for credit using your name.
This is called identity theft and it is becoming
prevalent. |