Credit reports are created after taking into account all credit transactions you have made. A good credit report ensures getting loans and at lower rates of interest as well. There are three credit bureaus in the United States, namely Experian Credit Bureau, Equifax Credit Bureau and Trans Union Credit Bureau. Let us look at Experian Credit Bureau:

Experian Credit Bureau was originally known as TRW Information Systems and Services (usually referred to as TRW). At present it is owned by GUS plc, a UK based holding company. Experian has been providing credit reports for more than 30 years. Experian Credit Bureau updates and maintains information on approximately 200 million consumers across the United States of America. On a daily basis data regarding consumers are updated so as to enable lenders to make valuable business decisions.

Credit Reports

Most people would be familiar with the history of credit reports. So we will not dwell on them. However, we will take a small look at credit reports. Credit reports contain personal information, credit information, public records information and view requests.

• Personal information contains data regarding your personal life like name, age, SSN, etc. It does not contain medical history.
• Credit information contains data relating to your credits, your dues, your payments etc.
• Public records information contains data like bankruptcy cases, divorce settlements etc.
• View requests contains information relating to the number of people who have requested to view your credit history to ascertain your credit worthiness.

Data regarding race, political preference, medical history etc are not collected and do not reflect on your credit report.

With the above-mentioned information lenders are able to make firm lending decisions. Your credit score also plays an important factor and the higher your credit score the better the chances of your getting a loan or to get it at lower interest rates.

Credit Score

Using complicated mathematical formulae credit scores are calculated. Your credit history, payment duration etc are all taken into account before the credit score is calculated.

The credit score is very important for businesses because they base their decisions on the score obtained by the person. In earlier days, lenders and businesses had to go through the whole credit report to understand the persons credit psyche and decide accordingly. But with the advent of credit scores, the decisions can be made easily. The higher the score means lower the credit risk for the lender or business.

Credit scores are affected by the amount of debt you have outstanding, the number of credit accounts you operate, the number of times you make late payments and the duration of credit accounts. If you operate a single credit account for a number of years your credit score will go up.

Tips on creating and maintaining a good credit history

The three Credit Bureaus namely, Experian Credit Bureau, Equifax Credit Bureau and Trans Union Credit Bureau, provide credit reports. Credit reports provide an insight on your financial capabilities. A good credit history means getting loans almost immediately. Hence it is necessary to maintain a good credit history and for that you need to adhere to the following steps:

• Always provide proper identification. By providing proper identification chances of mistakes occurring on your credit report is minimized.
• Write your particulars clearly and legibly when you apply for credit.
• Always make payments on time. If your credit history reflects that you pay bills regularly and on time, you will find that lenders would be more inclined to provide you with finances.
• Manage your money properly. Live within your spending limits.
• Check your credit reports regularly.

Tips on perking up your credit score

Credit scores can be perked up if you:

• Always make your payments on time. Making payments on time is a major factor for improving credit scores as it shows that you know how to manage finances. If you delay making payments it reflects badly on your credit score.
• Always keep debt that is outstanding to the bare minimum. If you have high debt that is outstanding it affects your overall credit score.
• Do not open many credit accounts. The more the number of credit accounts the lesser the credit score.

Preventing Identity Fraud

The new crime that is manifesting the United States and the world is identity theft. The thieves use the stolen identity and pose as the individual and incur charges on the person's account. Thieves have been found to take loans, buy cars using another person's identity. When they are caught they do not turn up for their court hearings and the result is an arrest warrant for the person whose identity the thief has stolen. Take the following measures to keep your identity from being stolen:

• Always carry only credit cards that you require in your wallet.
• Carry your Social Security Card only when necessary.
• Do not give your Social Security Number, your Credit Card Number etc on the phone or on the Internet.
• Throw away pre approved offer mail only after shredding them to bits.
• Mail your sensitive documents personally.
• Never fill forms in front of strangers.
• Regularly check your credit reports for discrepancies. If you find a new account, new credit card information etc, get it checked immediately. It could be a mistake or it could be an identity thief masquerading as you. If it is not a mistake inform the concerned authorities immediately.

These are some of the steps that could ensure that your identity will not be stolen.

Credit bureaus like Experian Credit Bureau, Equifax Credit Bureau and Trans Union Credit Bureau have set up lines to help you if your identity is stolen. They not only provide guidance but also help you along with law enforcement agencies to apprehend the fraudsters.