They keep a record of who has given you credit, when they gave you credit, how much credit you were given, and whether or not you paid it back on time.
Creditors pay the credit bureaus when they request your credit file. A credit bureau has no legal power over you. Government, police, or banks do not run the credit bureaus. They own large computer systems capable of storing credit information about everyone in the United States. However, due to the overwhelming amount of information in their computers, their method of information-collecting is very basic, and riddled with many errors. Since the bureaus have made so many errors in the past, all federal laws regarding credit information are very much in your favor.
Crucial Strategies in Dealing with Credit Bureaus
The only things you need to supply the credit bureaus for a copy of your report are your name, your social security number, and a legal mailing address (P.O. Box is a legal address). Credit bureaus own many of the collection agencies out there.
NEVER give credit bureaus more information than they need.
They have a right to request a copy of your social security card, but only a copy of the FRONT. You may need a copy of something showing your address if its different than what is showing on the report. Send them a billing statement that has your address. DO NOT send them a copy of your driver’s license as they request. Remember, these bureaus are information-gathering companies who sell your information, not only for credit, but also for promotional reasons.
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