Public records consist of information such as bankruptcies, judgments, tax liens, state and national court records, and, in a few states, unpaid child support. Depending on the category of account, a public record can stay on your credit report between seven to ten years. Only severe financial mistakes are provided in this section, not criminal arrests or convictions. Because public records can immensely harm your credit, it’s better to keep this section clear.
A credit bureau has a pivotal role to play as far as credit reports and credit ratings are concerned. The three biggest credit bureaus in the United States are Equifax, TransUnion, and Experian. These bureaus collect information about a person’s previous financial dealing from landlords, lenders, banks, and other financial institutions. Numerous other smaller agencies are also affiliated with these bureaus and give them monthly reports about your financial dealings with lenders.
The FICO score is a model for calculating your credit score which was developed by Fair Isaac Corporation. The FICO score model is one among the numerous other models which are used by lenders; some of them being NextGen, VantageScore, and the CE Score. However, the most popular model for calculating your credit score is the FICO model. FICO scores are the most used credit scores in the world and by all the three major credit bureaus, Experian, TransUnion, and Equifax.
The Equal Credit Opportunity Act is a United States law which makes it unlawful for any lender to discriminate against any applicant due to race, sex, religion, ethnicity, color, national origin, marital status or age (unless the applicant is a minor). The Act was brought into force in 1976 and applies to any person or entity engaged in credit decisions including banks, credit unions, finance companies, bankcard companies, and retailers.
