You will understand why your credit rating is so important to help you save money and improve your life.
You will also learn who the credit reporting agencies are and how they work.
Additionally, you will read about some of the more common credit repair myths and you will discover the truth behind the myth.
Credit Reporting Companies
There are three main companies that keep track of your credit record – Experian, Equifax, and TransUnion. These companies are independent from each other and may have different information in their files about your credit history.
Each of these companies takes their information and creates a credit score for you based on the information in your file. Because all of the information may be different, these credit scores may also be different.
These three credit bureaus are called the “big three” in the credit reporting field. Although there are other, smaller credit reporting companies, more than 90% of the lenders use one of these three companies when making their credit decisions.
As you progress through this book, you will learn more about these companies, your credit report, and your credit score.