Credit Reporting Agencies - Checking Your Credit Rating

Creditors and lenders depend on Credit Reporting Agencies to determine your creditworthiness. These agencies supply specific credit related information for the purposes of lending. Credit reporting agencies accumulate personal data about the people when they receive consumer credit applications from the creditors. In the United States, there are three main credit reporting agencies or Credit Bureaus. These are:

*Experian (formerly TRW), Allen, Texas. (www.experian.com)
*Equifax, Atlanta, Georgia (www.equifax.com)
*Trans Union, California. (www.transunion.com)

Credit Reports-Indicators of Your Credit Worthiness
You are entitled to receive a free copy of your credit report once each year from these agencies. Internet has made it easier for creditors to access these reports directly form the credit-reporting agencies. These credit reporting agencies or credit bureaus usually provide legal, personal, and account history related information. Financial and lending institutions are increasingly using multiple credit reports to meet their various requirements. These multiple reports provide extra security and the lending institutions get all-inclusive and absolute background check on your credit and spending history.

Through your credit application, the credit reporting agencies collects personal information, such as your name, address, social security number, telephone number, marital status, employment information, and possibly income. Through these credit reports, the lenders and financial institutions cross check the information that you provided, with that on the file with the credit bureaus or credit reporting agencies. The information you have provided is sometimes verified to check its accuracy.

On a monthly basis, your credit accounts, reflecting payments and account history for all credit related accounts, are reported to the credit bureaus. Your credit report will normally provide a detail of any delinquency you have had with your creditors. Most creditors or lenders have their own guidelines by which they would report your delinquency in payments. Normally it is a 30-day cycle, but certain creditors wait until a 60 day delinquent period has reached. Your delinquency is normally measured as 30, 60, 90, and 120 days past the due date.

Credit reports have a rating system that is 30 days specific. The ratings are:

*R1 - This represents an account that is current and has no payments due.
*R2 - This suggests that the payment were made after 30 days of the due date, but before 60 days.
*R3 - Paid between 60 days and 90 days.
*R4 -Paid after 90 days but before 120 days.
*R5 - Delayed beyond 120 days from the due date.
*R7 - Shows the creditor was forced to repossess.
*R8 - Account referred to collections
*R9 - Debts discharged through bankruptcy, repossession or foreclosure.

Your credit report is an indicator of your credit worthiness and it is therefore necessary that you take necessary steps to keep your credit report in good health. Credit repair is necessary if your credit report carries a negative marking for any reason.