How Credit Reports Are Determined

For more than five years Think Credit Reports has been providing premium account holders with quarterly credit scores included at no additional charge. Think Credit Reports customers are given access to credit information from all three major credit data bureaus.

An individual’s credit score is determined by calculating numbers in several major areas. First, more than one third of a credit score is based on payment history, including how frequently a person becomes delinquent on an account. Nearly equal in importance to payment history is the total amount owed; while excessive debt will negatively affect a score, having a number of active credit accounts, however, is not necessarily a bad thing. Additionally, the length of time an individual has been building credit is important, including when a person’s oldest and newest credit accounts were opened. Finally, the types of credit in use and the rate at which a person opens new credit accounts each represent 10% of an individual’s credit score.


How and Why a Credit Bureau Collects Information

Based in Valencia, California, Think Credit Reports provides customers with data from all three major credit bureaus. Think Credit Reports has interacted with these credit bureaus for more than five years.

As independent organizations, credit bureaus work to collect and dispense information that supports responsible lending. The credit bureaus obtain purchase, borrowing, and repayment information about consumers from data reports that subscribers submit on client accounts. This information tells the credit bureaus about any defaulted or late payments, accounts in arrears, and accounts in good standing.

Credit bureaus offer their services to a broad range of financing entities, including credit card companies and mortgage lenders. When a lender wishes to know about a particular individual’s credit history, one or more credit bureaus collect this data and offer it in the form of a credit report. The lender can then make more informed decisions about whether a borrower is likely to make on-time payments based on their past behavior. If the lender approves the borrower’s application for credit, information about the account then becomes part of the individual’s future reports.