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Things Consumers Should Know About Credit

Things Consumers Should Know About Credit - The Beacon

03-2013

By: Tom

Things Consumers Should Know About Credit

This morning as I was surfing the net, I came across an article which presented information about credit, credit scores, and how lenders and insurers determine risk.

By looking at your credit history, for example, insurance companies can predict whether a consumer is likely to turn claims on their home owners insurance or auto insurance.  If a consumer is more likely to submit claims, you may be subject to paying higher rates for insurance.

As consumers, have we ever considered why there are three credit reporting agencies?  The three major reporting credit reporting services are Experian, Equifax, and Transunion, and these three are competitors, and the information they provide may be different, and the credit scores most likely aren’t the same.  These reporting agencies don’t cooperate with each other, and they don’t share information among themselves either.  They compete to provide information to potential lenders.

If you’re prone to make frequent applications, your credit score is affected negatively.  Consumers who shop frequently for credit aren’t good risks.

Remember, you are entitled to receive each of your credit reports annually, free by visiting www.annualcreditreport.com.  You can view the entire article by visiting http://finance.yahoo.com/news/9-mistakes-kill-credit-090001446.html, and for more information you can trust, visit www.evansville.bbb.org.

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Tom

Tom is Vice President for the Tri-State Better Business Bureau. In addition to answering the needs of our accredited businesses, Tom can be seen on WEVV providing tips for businesses and consumers. He also works closely with other local media outlets to keep our community informed of marketplace issues affecting our area.