Chosing a credit reporting agency for your free credit report

Once you have decided to access your free credit report without a credit card and have received your credit score, your next challenge is to choose from among the three credit report bureaus (also called "agencies"): Equifax Credit Report Agency, Experian Credit Report Agency, and Trans Union Credit Report Agency.

Which one should you choose? Essentially, they all provide the same important service: providing you with your free credit report, and helping you identify areas where you need to improve, repair, or fix your credit score. The three credit reporting bureaus operate similarly, and major creditors and lenders report information to all three. Basically, due to errors and to differences in creditors' reporting policies, each agency may have different information about you, which is why most prospective creditors/lenders view all three bureaus as being equally important sources of information, and as such access what is called a "3 in 1 credit report". This 3 in 1 credit report comprises information from all three credit bureaus, thus giving the creditor/lender the most complete picture available of your credit situation. While the style, format and coding may be different between the three credit bureaus, a typical report will include four of the following types of information:

• Personal Information
• Public Record Information
• Credit History
• Inquiries

With respect to the fact that no single credit bureau is viewed in this article as better or more complete than any other, a brief summary of each major credit bureau (discussed in alphabetical order) is provided below.

Equifax: The Equifax credit bureau is a global leader in commerce and information services. They work in a number of sectors and industries, including: financial, retail, telecommunications/utilities, information technology, brokerage, insurance and business lending industries, and government. Equifax is focused on providing 'Personal Solutions' for individual clients, and has a solid reputation in the credit bureau field for providing relevant, accurate, and updated credit report information. They also place a priority on protecting the privacy and confidentiality of sensitive information.

Trans Union: Trans Union serves both individuals and businesses in providing credit reports, and serving as a clearinghouse for credit history information. Creditors and lenders worldwide provide Trans Union with factual, certified information on their customer's credit status.

Experian: Experian enables organizations and individuals to access credit information via sophisticated computer systems, software, and databases. Many of Experian's Credit Services' products and solutions are regulated by the Fair Credit Reporting Act, which protects consumers' rights by limiting access to their credit reports.

Regardless of which credit bureau you choose, an important number that the prospective creditor/lender will focus upon is your Fico score. Fico scores are viewed as predictive of your ability and willingness to repay a loan. Lower Fico credit scores usually trigger an underwriter to review your loan application and credit report before a final decision is made.

Prospective creditors/lenders will also look at your Beacon score, which is also a determinant of credit worthiness. Your Beacon score falls as a result of negative entries in your personal credit report, such as late payment, and rises as a result of positive entries, such as timely payments.

Obtaining your credit report from either of the three credit bureaus: Equifax, Experian and Trans Union, is a fairly simple decision, because as noted above, each one provides a similar kind of information. However, some bureaus do not capture all of your credit information, due to the relationships that they have with various creditors/lenders. As such, your best bet might be accessing all three, or performing a 3-in-1 credit report, and identifying your free fico score. Ultimately, whichever route you choose, accessing your credit report is an excellent and effective way for you to take control over your credit status, and if necessary, take steps to repair a poor credit score, or maintain a good score.