Business Services

Who Could Collect Your Financial Info?

August 30, 2017

Did you ever think that all of your financial transactions are being monitored by different parties? Some of you may know that but others don’t. However, it is better to be aware of that before doing any kind of business. Basically that information is collected and distributed by due diligence For example, in the United States, there are three such major firms namely, Transunion, Equifax and Experian. They are referred to as the “Big three” because they are the largest agencies at present. 

Having said that, it is important to understand the reason to have these credit rating agencies. The first question would. 

What is done by them? 

Primarily they have two jobs. Initially they collect your financial information such as payment habits from the companies and organizations that you deal with. After that they include that information in your credit report. It could be accessed by banks, credit card companies and other individuals who want to assess your credit worthiness before lending money to you. Someone can argue that it is not ethical when everybody could read your details. But, you don’t have to worry. No one could view the report without your permission to do so. 

Similarly, they can even offer a credit report for you. Generally, the ratings range from 300 to 850. It is said that higher a persons’ rating, better it is. 720 and above is considered good. 

How do they obtain your information? 

The creditors and other companies who deal with you, regularly send your payment status to the agencies. For instance, either you make the payment on time or delay it, they will report it and there won’t be any excuse for a late settlement. Further, they will also provide information such as tax liens, foreclosures, charge offs etc. Depending on how you have dealt with these things, it could make a positive or a negative impact on your report. If you have a clean report, then lender may consider you as a favourable candidate for loans. Regardless of how they gather your info, it is your responsibility to stay ahead of the game by doing well with your transactions. 

Can they act limitlessly with your info? 

No. You should remember that you are always supported by the fair credit reporting act. They cannot just reveal your details to the public. You have the right to get the annual free credit report. By looking at it, you can inform them if there’s any inaccuracy. If they have falsified anything you can take actions against them. As such, there are plenty of ways that you can use to keep an eye on your credit report. Nothing to worry. You have the control of everything as long as you act honestly.