Friday, September 21, 2007

Fourth Type of Credit Report

Your credit report is a compilation of how you've handled credit throughout your life. Credit bureaus monitor how much debt you take on and how you pay off that debt. They report to potential creditors both a detailed account of your credit history and a score that gives a numerical rating of your creditworthiness. Most people know about the three major credit bureaus, but there is a fourth credit-reporting organization---Innovis---of which many people are not aware.

Big Three

    The three "major" credit bureaus are Experian, TransUnion and Equifax. When you file for a three-bureau credit report, these are the entities from which you get information. When you apply for credit, some potential lenders will look at only one credit report, while others may look at two or even all three.

Innovis

    Innovis is a fourth credit reporting agency. Although Innovis started out by selling sales leads to potential creditors, it now gathers and reports on credit information for those same potential lenders. Innovis has a history of being harder for consumers to get information from than the other credit history bureaus.

What to Do

    Whenever you want to check or clean up your credit report, go to the website for Innovis and follow the directions for obtaining a report from that agency. Innovis does not participate in the standard three-bureau checks, in which consumers can receive free copies of their credit reports through a central agency once a year. Innovis has more rigorous requirements for a consumer to request a report. For example, while the three major bureaus allow Internet ordering of credit history, Innovis requires consumers to order reports by telephone or to make requests by letter. Depending on the state in which you live, you may be charged a fee, although you are entitled to a free report if you've recently been denied credit or if you meet other conditions.

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