HOW LENDERS SEE YOU
Lenders don't want to treat you like a number or a piece of paper. But these lenders are running a business and they have constraints. They have to work within certain rules, using a series of formulas, before lending you money. It doesn't matter if you're nice, if you've lost job or if a bad relationship has left you in a financial hole. Lenders have to depend on a series of written reports, and a number, to learn everything they need to know about you. What is most influential in making their decision is your credit history.
YOUR CREDIT REPORT
The written report that lenders depend on is called your credit report. A credit report is essentially a history of your entire financial life, from your first credit card to the present time.
There are three major credit reporting companies that track your credit. They're called credit bureaus. These companies Equifax, TransUnion, and Experian all keep similar records of your credit history. When a lender is considering you a loan or a credit card, the lender will contact one of the three credit bureaus for a copy of your credit history. On the basis of the information in your file, the lender will decide whether or not to take a risk with you, how much to lend you, and at what interest rate.
Equifax Information Service Center
800-685-1111
P.O. Box 740241
Atlanta, GA 30374-0241
Experian Information Solutions, Inc.
888-397-3742
P.O. Box 2002
Allen, TX, 75013
TransUnion Corporation
800-888-4213
Post Office Box 1000
Chester, PA 19022