Worthy of Note
As mentioned, Experian, Equifax, and TransUnion dominate the credit reporting industry, but they are not the only credit bureaus. Here are two others worth mentioning.
Innovis is the major compiler of credit data used by credit card companies for pre-screening unsolicited credit card offers. Innovis is not often in the public spotlight, but that may change. In 2001, mortgage giants Fannie Mae and Freddie Mac asked all of their mortgage servicers to report borrower’s payment histories to Innovis, potentially expanding the company’s future purview. This was not the first time that Fannie Mae and Freddie Mac contributed to the rise of a credit industry participant, as we shall see later in the section on Fair Isaac Corporation, the creator of the FICO scoring model.
ChexSystems, per their website, “is comprised of member financial institutions that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts.” Bounced checks and unresolved insufficient funds charges are reported on your ChexSystems report, which may be considered by banks when opening new accounts.
ChexSystems and Credit Repair
ChexSystems is a national credit bureau as defined by the Fair Credit Reporting Act (FCRA), and therefore must comply with all FCRA requirements including providing a free annual report – which you can order easily at their website, processing disputes, and allowing the placement of a security alert in the case that you suspect the unauthorized use of your identity.