What is a Nationwide Credit Reporting Agency?

Nationwide Credit Reporting Agency | RentReporters

What is a nationwide credit reporting agency (NCRA)?

What type of information do they collect? 

How does this information impact your credit?

Your credit score is always changing, and what you may not know is that you don’t have just one credit score. Why? Because not only can your score can change based on new information, like a timely or missed payment, but also, credit reporting agencies do not have the same information.  And if your credit score is low – or if you don’t have one – not only will you pay higher interest rates, but your ability to get insurance, rent an apartment and even get utility service can be challenging.

But with the right tools and resources, you can educate yourself on what you need to know about NCRAs. Only then can you take the right steps to proactively improve your credit score and ensure that your credit report does not have inaccurate information, which can negatively impact your score.

What you need to know now about NCRAs:

What and who are the NCRAs?

TransUnion, Experian, and Equifax are the three major credit reporting agencies.  They collect and maintain the information that makes up your credit history and your credit report. NCRAs are for-profit companies that sell this information to other companies, like lenders, insurance companies, potential employers, utility companies, and landlords, who use this information to determine your credit worthiness. NCRAs do not share information with each other, so information that is found in one credit report may not be in another.

What type of information do they collect?

NCRAs collect information from your creditors, like a bank or credit card company, and public records, such as property and court records. Each NCRA gets its information from different sources.

How does the information collected by NCRAs impact your credit?

The information collected by NCRAs is used in your credit report. Organizations that may request your credit report can include lenders from whom you are seeking credit and those who gave you credit; utility companies from whom you are requesting service; your employer or prospective employer; potential landlord; banks where you want to set up an account; and government agencies if you are applying for government benefits. What is in your credit report can negatively or positively impact your credit score, which is a number that is used to determine your credit worthiness. For example, Vantage 3.0 and FICO use a scale of 300 to 850, with 850 being the lowest risk for default and 300 being the highest. The higher the score, the better, as you will have more access to financial products and better terms. On the other hand, a low or no score can result in your prepaying utilities rather than receiving a bill, being denied a credit card, and not getting that dream job.

RentReporters is empowering people to change the course of their future based on their consistent and responsible financial behaviors, like paying their monthly rental payments on time. By simply having on-time rental payments reported to the NCRAs, individuals can positively impact their credit scores and create a path to life changing opportunities.

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