A credit reporting agency is responsible that documents and maintains the credit history of businesses and individuals. They receive the data from various sources such as lenders and the data is received by them in the form of a report which also includes the credit score.
The right credit reporting agencies play a vital role in the credit industry as they are responsible for sourcing the information of credits, determine the credit score and partner with other issuers of credit for the purpose of marketing. These agencies receive a variety of information that is offered to the customers as services. If broadly categorized, these agencies belong to two different customer bases. One for individuals and the other for businesses, and one of the largest credit reporting agencies in the world include the Dn and Bradstreet, Equifax and the Transunion.
What all do they work for?
These credit agencies exist because they have the source of immense data that can be included in the credit report. The lenders also collaborate with the credit agencies that get reports customized for some specific information that can then influence a decision for credit. These agencies also partner with a lot of companies to get access to the credit histories of their customer base. They not only receive the basic credit information, but they also have access to rent bills, cell phone bills and water and electricity statements. The latest credit reporting agencies are working to create a reasonable score report for people who do not have access to banks and loans, and who do not have sufficient methods to determine transactions that dictate their credit history.
More about credit reports
Every credit report follows a standard template that contains the trade line for each borrower. The trade lines are useful for determining the essential information about the amount of credit issues and the payment done and pending. Payments which are not cleared are reported to these agencies if two or more continual payments are missed. Thus, such payments also begin with 60 days past the report, and the 90 days, 120 days and it goes on.
Trade lines can be reported from a variety of information such as credit card accounts, utility bills, tax paying bills and cell phone bills. Some of the adverse credit scenarios stay on the bill for seven years. Any case of bankruptcy will remain on the report for a minimum of 10 years. The credit reporting agencies are governed primarily by the FCRA and are regulated strictly by the Federal Trade Commission.
So, if you want to maintain a good credit score, make sure to repay the debt collectors Australia on time and clear any recurring payments big or small as soon as possible.