Credit Reporting Agencies - Benefits to Consumers

The nation's three credit bureaus -- Experian, Equifax, and TransUnion -- are known primarily for collecting financial data about consumers and using it to create credit reports and credit scores. But all three agencies also offer a wide range of products and services to help people manage their credit.

Check your credit report for accuracy

If you want to review your credit report to make sure all of the information in it is accurate, you can order a copy at any of the credit bureaus for a small fee. Bear in mind that you have three unique credit reports - one from each reporting agency - so you'll need a copy of each to analyze your financial situation. Each bureau lets you purchase a copy of all three of your reports for an additional fee and you can use their online dispute forms to correct any incorrect information.

Monitor your credit report to prevent fraud or identity theft

With identity theft on the rise, it's important to check your credit report on a regular basis to ensure it doesn't include any fraudulent activity. Fortunately, all three credit agencies make it easy for you to do this. Simply sign up for a credit monitoring program and you'll have access to your reports and will receive alerts, via email or cell phone, notifying you of any new significant activity on your report. Some of the products offered include identity theft insurance to provide you greater protection.

Keeping track of your credit score

Lenders use your credit score to determine your level of creditworthiness, and that three-digit number can save you substantial amounts of money in lower interest rates on loans and credit if you have a high enough score. For this reason, it's imperative that you know what your credit score is and how you can improve on it. At the websites for Experian, Equifax, and TransUnion, you'll be able to order a copy of your credit score to see where you stand. If your score is too low to qualify for reasonable interest rates, you can take steps to improve it before you apply for any new credit.

Credit education

If you want to learn more about credit and financial management, it may be worth your time to check out consumer education information at the bureaus' websites. You'll find advice on improving your credit, understanding your credit score and report, preventing fraud and identity theft, repairing your credit history, disputing incorrect information on your credit report, and handling major life events which affect your financial information.

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