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In recent decades credit has become easier and easier to obtain. Credit cards, for instance, were once issued primarily to the wealthier classes in society and were used only occasionally. At the beginning of the twenty-first century, almost half of all Americans had at least one general-purpose credit card (that is, a Visa, MasterCard, American Express, or Discover card). The rise of credit as a common way to buy necessities, luxuries, and everything in between means that credit bureaus process more information and are a more vital part of the overall economy than ever before. Credit bureaus also keep track of and analyze the data derived from an ever-increasing number of loans for homes, cars, and other high-cost items.

Today, credit bureaus regularly gather information from creditors (banks; credit-card issuers; mortgage companies, which specialize in lending money to home buyers; and other businesses that extend credit to individuals and businesses) and assemble it into files on individual consumers and businesses, while updating their existing files. In addition to the data gleaned from creditors, credit files might also contain one’s employment history, previous addresses, aliases, bankruptcy filings, and evictions. Information normally stays on a credit report for seven years before being removed.

Most of the local and regional consumer credit bureaus in the Untied States are owned by or are under contract to one of the three primary consumer credit-reporting services mentioned above. Each of these three companies gathers and distributes information separately, and credit scores and reports differ slightly from bureau to bureau. Each company maintains around 200 million individual consumer credit files. Often a lender will use an average of the credit ratings provided by the three different bureaus when deciding whether or not to make a loan.

The primary commercial credit bureau in the United States is Dun and Bradstreet. D and B has credit files on more than 23 million companies in North America and on more than 100 million businesses worldwide.

In addition to providing creditors with information necessary to determine a credit applicant’s qualifications, credit bureaus make their data available for more controversial purposes. For instance, direct-mail marketers often buy information from credit bureaus in their search for potential customers. If you have ever received a letter telling you that you have been pre-approved for a particular credit card at a specific annual percentage rate, it is true; the credit-card company already knows your credit rating and has indeed already approved you for the specified card. Prospective employers and landlords sometimes purchase credit histories, too.

For more information on personal credit, visit my ‘What is Credit Report’ here.

Article Author :Kris_Lee

Tags: Loans, Bankruptcy, personal credit, cards, irs

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Tags: Bankruptcy, cards, credit cards, credit histories, credit score, irs, Loans, personal credit