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Who Are the Credit Reporting
Agencies? What do they Really Do?
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The Credit reporting agencies were created in the
1900's when people started moving around across the country. At
this time it was difficult to track consumers credit histories since
they could move more easily from place to place, default on loans
and just begin again in a new area. There also became more
lenders in one area where in the past there would be a local lender
who could control the information and history of paying
patterns. That lender being the only available choice for
borrowing money made it easy to regulate payment
patterns. Because of these growth changes the need for an
entity that could provide all of an individual or business credit
history, no matter where they are located at any given time, was
paramount.
The Credit Bureaus are non governmental agencies,
that collect and sell information. They are also known as
"The Credit Reporting Agencies." The three major
consumer credit bureaus that supply the majority of consumer credit
are known as Experian, Trans Union, and Equifax. For the most
part, this information includes histories of creditworthiness that
show how business and consumers rate in terms of their ability to
meet debt obligations. Personal credit profiles provide
creditors, collectors, and solicitors with a view of a consumers
history for a period of 7-10 years. There are a few
exceptions that allow information to stay even longer. The
credit reporting agencies provide many other services related to
gathering information and statistics and some are involved in
business credit as well. Dun and Brad Street is the major
bureau that gathers information to provide to creditors and vendors
for business to business credit. Credit bureaus supply this
data to many clients who use it to make decisions about extending
credit to consumers and businesses. Some bureaus are private
enterprises and others are traded on the stock exchange.
Trans Union has been in business since 1968 with headquarters
in Chicago. It is a private company that recently sold more
than half of its shares. The Pritzker Family, who owns Trans
Union and much more, stated they sold 51% of their stake to a
private equity firm, Madison Dearborn, last month. After
many internal disputes within the family it was agreed by all family
members that their empire would be divided up by 2011. Trans
Union being a piece of this family's $15 Billion portfolio.
Trans Union is the smallest of the three reporting bureaus
supporting 50,000 plus customers on five continents and more
than 500 million consumers across the globe.
Equifax was founded by two brothers in 1898.
Cator & Guy Woolford, a bank employee and an Attorney who started
compiling information reported by creditors on the history of payment
patterns of their shoppers. They began to publish their
findings in the form of a guide and sold them for $25.00 to
merchants. They also sold individual credit reports on
consumers. It was such a success and continued on to be the
business it is today. Equifax has been gathering information
for consumers and businesses for over 100 years. They
employ over 7,000 people in 15 countries across the globe.
Equifax focuses on solutions for businesses and provides consumers
with credit reports as well. Equifax is a public company.
In 1996 the old Experian (which was called TRW)
was combined with the CCN Group by GUS plc. the British
Conglomerate. CCN Group was Europe's largest information
bureau. Everyone recognizes the name TRW and some consumers
still use the name not realizing that it is no longer TRW but now
Experian. After the two companies merged GUS developed and
strengthened Experian over a 10 year period and then in 2006 GUS
de-merged the two and Experian became an independent
company. Experian is a public company like Equifax. Experian
employs about 15,000 people and provides data and services to clients
in over 65 countries.
The Credit Bureaus services include Credit Services, Decision
Analytics, Marketing Services, and Interactive. What this means
is helping businesses across the globe to manage risk and rewards
that are related to lending to consumers and business. They
maintain databases that hold information about all consumers
nationally and in many cases on a global level. They offer
analytical tools and skills that help give organizations support so
they can make better decisions. Through their marketing
services they help clients to find and keep customers. They
open communications between consumers and businesses through
providing email, telephone, direct response mail, text, and
more. This enables businesses to develop a larger client base.
The Bureaus also sell products that allow consumers to manage and
protect their personal credit profiles and to view a variety of score
models.
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Call Now for a Free Credit Education Seminar!
914-524-8300
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Call
Today for a Free Credit Education Seminar!
914-524-8300
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How
do patterns of payment influence credit scores?
Does opening and closing credit drop your
score 60 points?
Do you have ALL the answers??
Call for your FREE Educational Seminar!
This training includes indepth education on each of the credit
reporting agencies and the scoring systems associated with them. We
will also educate your management staff on credit, the unknown dangers
of credit score reduction and the ways to help your clients have peace
of mind and get the credit they need.
Contact NSA Today!
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Tracy A. Becker
President
155 White Plains Road
Suite 203
Tarrytown, NY 10591
(914) 524-5014
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Featured Testimonial
May 3, 2010
I am in the banking business and referred a client to NSA
recently. Within 30 days they increased the clients credit scores
dramatically. The staff is lovely and very much service oriented. I
would highly recommend them to anyone who needs credit advice and score
improvement. They are a high quality company in an industry that is
filled with scams.
Stuart N. Siegel
Ore Hill Advisors, Principal
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NEW!
Do
You Have Any Questions About Credit?
Ask Tracy!
ask@northshoreadvisory.com
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"Great
credit brings great
opportunity!!"
Copyright 2010
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