A combined credit report from the three major credit reporting agencies – Experian, Equifax, and TransUnion – provides a detailed history of credit activities, which is used to calculate a Fair Isaac Corporation (FICO) score. Potential creditors use this information to determine what rates, terms, and products an individual qualifies for. Checking a combined credit report also ensures accuracy and can help detect cases of identity theft and fraud.
When a person wants a copy of their credit report, they will typically request it from Experian, Equifax, or TransUnion. These are the three major credit reporting agencies. The problem is that each of these three agencies will have slightly different information on them, which could be critical. For obvious reasons, it will always be more beneficial to request a combined credit report, where all the information from each report is available. This way, there are no surprises when you apply for a mortgage, a car loan, or just try to clean up some of the stains from your past.
Your combined credit report is full of relevant information including a detailed history of your credit activities, information about where you have lived, worked and borrowed money, as well as information about who has reviewed your credit history. This information is used to calculate your Fair Isaac Corporation (FICO) score. This system is the best known and most widely used credit scoring model in the United States.
Potential creditors use the information in a combined credit report to calculate what rates, terms, and products an individual qualifies for. These numbers will determine what is offered in credit cards, loans and, more recently, even employment.
A credit score is compromised by many different factors. To make the process even more complicated, each credit bureau has a different formula that they use to determine a FICO score. Therefore, an individual could have three different credit scores with three different credit bureaus. Of course, this only complicates the process. In an attempt to eliminate confusion, the credit bureaus have created a basic score known as a combined credit report.
When an individual applies for any line of credit, the lender will pull all three credit reports from the credit bureaus. This will give you a clear view of what that individual has done in the past. What lenders see on these credit reports will determine what the interest rate might be. Checking a combined credit report also ensures that the reports are accurate. Inaccurate information is often found in credit reports, but many never know it’s there until a copy is ordered and read again. Many cases of identity theft and fraud are also frequently discovered.
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