Comparing Credit Reports between Credit Bureaus

An individual must check their credit score report annually. This is especially true in finding some discrepancy between the reports and the actual records. It is a good practice to ask for three copies from each of the major credit repositories in existence for comparison.

Scrutinize Every Agency’s Credit Report

Each agency provides different results since each creditor has a unique way of reporting and appreciating their data. There are creditors that report to a single agency while there are others that report to all. The individual’s loan history is shared by all agencies so it is best to check if they are all in the same page especially if his purpose is debt consolidation.

Individual Approaches of Credit Bureaus

The credit bureaus maintain credit history for each individual. There, persons can see all the account they have for five to 10 years, loans that they have taken, and the ones that are fully paid. All transactions indicated therein make up their credit bureau data.

Inevitable Discrepancies between Credit Repositories

Since there are at least three major agencies that holds each individual’s records, there is a possibility of discrepancies and errors when placed side-by-side. For this reason, having a copy of their reports separately is a good thing to do.

The Effects of Faulty Credit Reports

What happens when an individual receives a faulty report?  His credit score calculated in that report will definitely be lower than the actual. What is the result of having a faulty credit report? He will need to pay an extra percent on his mortgage; triple on the interest of is car loan, and more. Having a lower credit standing makes an individual an unqualified buyer. These are their ways to earn extra money out of your credit standing.

There is no established system available that credit bureaus have when it comes to correcting these errors.  They do not take responsibility on their failure to generate a correct report because they believe that they are only reporting this information. 

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