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Merged Credit Reports

by: Sahil | last updated: October 30, 2009
Tags: Merged credit reports, 3 in 1 credit reports, credit reports, combined credit reports, credit bureaus, credit score, credit rating, credit rating agencies, FICO, FICO score

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Merged Credit Reports

Merged credit reports are those that have information from all the three credit bureaus Experian, Equifax, and TransUnion. The need for a merged credit report arises because the information collected by the three credit bureaus may differ slightly. The credit score and the history will differ from one credit bureaus report to another. Therefore even lenders or creditors tend to favor a merged credit report rather than relying on only one report.

The report is available and sold online by numerous companies that have software that combines all the three reports. The merged credit report is comprised of pertinent data that includes a comprehensive history of your credit behavior, information about where you have lived, worked, and borrowed capital from, as well as data about who has reviewed your credit history. This information is made use of when calculating your credit score.

Potential lenders make use of this data on a merged credit report to compute the rates, terms and products that a person qualifies for. This information will dictate what is offered on credit cards, loans, and even employment.

A credit score is comprised of several different factors. To make the process even more complex, every credit bureau has a special formula that they use to determine a FICO score. As a result, a person could have three dissimilar credit scores with three different credit bureaus which complicate the process. In an effort to get rid of the disorder, the credit bureaus formed one central score which is called as a merged credit report.

When a person submits an application for any lines of credit, the creditor will pull each and every one of the three credit reports from the credit bureaus. This will give them a clearer picture of what that person has done in the past. What the lenders observe on these credit reports is going to establish what the interest rate might be.

Examining a merged credit report also makes certain that the reports are correct. There are many times when erroneous data is found on credit reports but many people are not aware of this and can only come to know if they order the credit report. This is frequently the way that several occurrences of identity theft and deception are revealed.

A six-report merge is feasible, which encompasses of husband and wife reports pulled jointly or independently, from each of the three bureaus. This service is also offered by many companies and can be found on the internet. However caution is advised while ordering your report from any company other than the credit bureau. The best way to do this is to contact the Better Business Bureau and check whether the company is affiliated with them.

A merged credit report is also called a 3- bureau credit report and is the one that mortgage lenders make use of when financing or refinancing a house. Many auto dealers and credit card businesses also check each and every one of the three bureaus when evaluating your credit. Thus it becomes important to order a merged credit report in order to understand the credit report from the point of view of the lender and also to correct any wrong or inaccurate information on the credit report.

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