Detailed Definition
TransUnion is one of the three major credit reporting agencies operating in the United States. It was founded in 1968 and is headquartered in Chicago, Illinois. TransUnion collects and maintains detailed credit information on individual consumers which it compiles into credit reports. These reports play a critical role in the lending industry as they help financial institutions evaluate an applicant’s creditworthiness and determine the terms of credit. TransUnion also provides credit scores, which summarize an individual’s credit history into a three-digit number that quantifies their likelihood of repaying borrowed funds.
Examples
- Mortgage Application: When you apply for a mortgage, the lender will likely request your credit report from one or more of the major credit reporting agencies, including TransUnion, to assess your creditworthiness.
- Credit Monitoring Service: TransUnion offers consumers services to monitor their credit report and score, which can provide alerts for potential fraudulent activity and changes in credit status.
- Auto Loan: When applying for an auto loan, the lender may check your TransUnion credit report to evaluate your ability to make timely payments.
Frequently Asked Questions
Q: How can I obtain my credit report from TransUnion? A: You can request a free credit report from TransUnion once a year through AnnualCreditReport.com. Additionally, you can directly purchase a report from the TransUnion website.
Q: What information is included in a TransUnion credit report? A: A TransUnion credit report includes personal information, credit account history, public records (such as bankruptcies), inquiries, and collections information.
Q: How often is my TransUnion credit report updated? A: Your TransUnion credit report is generally updated monthly, but this can vary depending on how frequently your creditors report information to the agency.
Q: Can I dispute information on my TransUnion credit report? A: Yes, if you find inaccurate or incomplete information on your TransUnion credit report, you can file a dispute online, by mail, or by phone.
Related Terms
- Credit Reporting Agency: An organization that collects and provides information regarding individual consumers’ credit histories.
- Credit Bureau: Another term for a credit reporting agency.
- Credit Score: A numerical expression based on the statistical analysis of a person’s credit files, representing their creditworthiness.
- Experian: One of the three major credit reporting agencies in the United States.
- Equifax: Another of the three main credit reporting agencies in the United States.
Online Resources
References
- TransUnion. (n.d.). Retrieved from TransUnion
- AnnualCreditReport.com. (n.d.). Retrieved from AnnualCreditReport
- Consumer Financial Protection Bureau (CFPB). (n.d.). Understanding Your Credit
Suggested Books for Further Studies
- “Your Score: An Insider’s Secrets to Understanding, Controlling, and Protecting Your Credit Score” by Anthony Davenport
- “Credit Repair Kit For Dummies” by Steve Bucci
- “The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness” by Dave Ramsey
- “Personal Finance For Dummies” by Eric Tyson
- “Your Score: How to Fix, Improve, and Protect Your Credit” by Jim Hodgkins
