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Chapter 9: Your Credit Bureau File

You can run, but you can’t hide when it comes to your credit history. Even 20 years ago, a move across the country meant a good chance of leaving behind memories of credit problems that other lenders might not discover. Those days are long gone, much to the relief of all lenders.

Credit rating agencies are clearing-houses for all credit information. If you don’t know them – they certainly know you. In this country, it is usually Equifax Corporation and more recently, the Canadian owned Trans Union. Both compete to sell reports to credit grantors across the country. The only effect for most consumers is that they now have two files with overlapping or perhaps different credit information with both these firms.

Credit bureaus do not actively gather facts and reports. They collect information from banks, credit card issuers, finance companies, and almost all other lenders. They don’t rate customers, but accumulate, sort and sell factual information as a central clearinghouse. At regular intervals, thousands of…