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Credit Reports
Your credit report is information about your borrowing and
repayment history. It is put together using facts provided by
your creditors and from public records such as court
documents. Credit bureaus compile the data for potential
creditors, employers, and others who can show they have a
legitimate business reason to ask for it. Credit bureaus do
not approve or reject you as a credit risk.
While there are over 1000 credit bureaus in the United
States, your records are most likely to be requested from one
(or all) of the three largest:
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Equifax
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Experian (formerly TRW)
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Trans Union
An annual survey published by Trans Union shows that most
consumers feel the benefits of credit reports outweigh
concerns about privacy. Businesses know that they can count
on the information provided by the credit bureau. They can
approve loans faster, for more borrowers, with less
risk. They have fewer defaulted loans, which lets them keep
their costs down, and they are able to extend credit without
always requiring the loans be secured.
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