How Credit Bureaus Operate

For more than five years, Think Credit Reports has provided consumers with their credit information as compiled by all three major credit bureaus. Think Credit Reports also offers premium members a number of additional services, including quarterly updates and daily monitoring.

Credit bureaus operate as the most common type of credit reporting agencies (CRA). Credit reporting agencies are responsible for both collecting and disseminating information about a person’s credit, as creditors report it to them. Typically, a smaller agency that collects credit information communicates this data to its affiliate larger bureau, which allows the three major entities to report accurately to potential creditors.

Today, the three national credit bureaus are Experian, Equifax, and TransUnion. Each receives reports about a borrower’s payment history, open accounts, paid loans, and inquiries into new accounts. Because these data come from different sources, not all bureaus have the same information about a particular borrower. For this reason, borrowers and those checking their credit frequently request reports from each of the three national bureaus.

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Simple Ways to Improve Credit Scores

Think Credit Reports is an online source for providing users with individual credit scores. Think Credit Reports is one of the few online credit score outlets able to access information from all three credit bureaus. The company has been in business for five years.

Credit scores play an important role in determining many financial situations, including how much a person can expect to pay in loan interest and whether they will be accepted for a credit card. Here are some tips on how to improve credit scores quickly.

Get a credit card: Simply having a credit card can help improve credit scores and rebuild damaged credit. If possible, find a card that reports to all three credit bureaus.

Pay off revolving accounts: Credit bureaus give high scores to those with large gaps between balances and available credit. Try to keep balances below 30 percent of the credit limit on each credit card; below 10 percent is even better.

Review reports from all bureaus: Since each bureau receives credit and payment information independently, it is important to review each credit report individually and immediately clear up any errors, such as payment information and credit limits.

Do not cancel unused cards: Cancelling a card can often negatively affect a person’s score. Instead of getting rid of old cards, use them occasionally so they keep reporting to the credit bureaus. Having a long credit history is a great way to increase credit score.