A Consumer Reporting Agency (CRA) is a company responsible for providing detailed credit information on individual borrowers. The Consumer Reporting Agency is governed by the rules of the Fair Credit Reporting Act.
Functions of Consumer Reporting Agency(CRA)
One of the primary functions of Consumer Reporting Agency (CRA) is to provide credit information of the consumer to the lender. Lenders use this report to assess the creditworthiness of the consumer and the ability of that consumer to repay his loan. Credit scores are ascertained on the basis of the credit report provided by the Consumer Reporting Agency.
A Consumer reporting agency accumulates information about how consumers use their credit. They gather information from consumer financial transactions with an intention to sell to the lenders or creditors.
Leading Credit Reporting Agencies
Three nationwide consumer reporting agencies include Equifax Credit Information Services, Inc., (Equifax), Trans Union LLC (Trans Union), and Experian Information Solutions, Inc. (Experian).
Consumer Reporting Agencies are governed by Fair Credit Reporting Act (FCRA). FCRA is designed to maintain fairness, accuracy and secrecy of the information in the files of credit reporting agency. FCRA also helps the consumers to resolve inaccuracies in their credit reports with ease.
Mail correspondence of Consumer Reporting Agencies
P.O. Box 740241
Atlanta, GA 30374
P.O. Box 2002
Allen, TX 75013
1 888 397 3742
P.O. Box 1000
Chester, PA 19022
Consumer reporting agency sometimes asks for nominal charges. In the event the company takes adverse action against the individual, then no charge is taken.
Type of information collected by Consumer Reporting Agency
Consumer reporting agency normally accumulates information like individual’s name, date of birth, Social Security Number, employer’s name, spouse’s name, employment history, home ownership, income of the individual and individual’s previous address.
Advice by expert
Financial advisors recommend that consumers should review their reports periodically for any inaccuracy or omission even if they have not been denied credit. Reviewing the credit report in advance will certainly speed up the credit granting process.