Consumer reporting agencies, also known as credit bureaus, help creditors determine a borrower’s creditworthiness. The three major agencies in the US are Equifax, Experian, and TransUnion. Pay Rent, Build Credit (PRBC) is a new agency that focuses on positive payment history, such as rent payments. Consumers have the right to request one free credit report per year to check for errors and outstanding debts. Information reported to consumer reporting agencies includes payment history, missed debts, bankruptcy filings, and outstanding debts.
A consumer reporting agency is actually designed to help creditors determine whether to extend loans to borrowers (consumers). It may also be called a credit bureau or credit reporting agency. In the United States, there are three major agencies that banks and other lending companies can contact to determine the creditworthiness of a potential borrower. These are Equifax, Experian, and TransUnion. All three have access to the same information and can produce credit reports and credit scores upon request.
Another consumer reporting agency that is new to the establishment is Pay Rent, Build Credit (PRBC). The main difference between this agency and others is that it focuses on customer reports on timely payments, such as rent payments, car payments, etc. Consumers have to sign up and do their own reporting, but it’s a completely different approach.
The traditional consumer reporting agency focuses only on the negative, when you defaulted on your credit obligations, while PRBC focuses on the positive by providing information on when you have met your obligations on time. For some, this has provided a solution, especially when they may have outstanding debt but have always paid on time and have been religious about paying rent and utility bills. This is especially the case when it comes to considering potential tenants, and reports from Equifax, Experian, or TransUnion won’t tell landlords if you’ve been a good tenant, although they may tell landlords if you’ve backed out of leases. or not pay rent. PRBC can provide details about how it handles your debt responsibly that other consumer reporting agencies will not.
As of 2003, people have the right to request one free credit report per year from one of the big three bureaus. Requesting this report can be an important step in understanding if you have any outstanding debts that need to be paid, or if there is something on your report that is not correct. According to some studies, there is a high incidence of errors in the reports of consumer reporting agency organizations. Knowing what’s on your credit report can be valuable if you’re looking to apply for a large loan, or even a small one, and want the lowest possible interest rate.
Information held by a consumer reporting agency is collected and reported to the agency by those to whom you owe debts. It can include things like whether you made your payments on time, whether you missed a debt, whether you’ve filed for bankruptcy (up to 10 years after the bankruptcy filing), and whether you have any outstanding debts. Essentially, almost anyone, except most individuals, can report debt to a consumer reporting agency, especially if that debt is not paid in accordance with the agreements you signed when you incurred the debt.
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