If you have ever tried to get a loan for a new home or a car or establish a line of credit, you know that lending institutions want to know something about your credit history. It helps them determine their level of risk in extending you a loan. Your credit history can affect whether you get the loan or not or the rate of interest, if you do. But did you know who compiles the report on your credit and how they do it?  Vivix Credit Solutions thinks it is important that all their clients understand how credit reporting has evolved in order to repair and enhance your credit profile.

Banks and other financial lending institutions rely on credit reporting agencies, also called credit bureaus. These agencies collect your credit history from credit card companies, banks, mortgage companies and other lenders to create your credit report, which is used to assign you a credit score. Credit bureaus play a powerful role in determining who should get a loan, and how much, Vivix Credit Solutions emphasizes. Not only that, more and more employers check your credit score before extending you an offer. Your credit score matters when you are looking to rent an apartment or get insurance.

Experian is one of what is commonly known as the “Big Three,” credit bureaus, Vivix Credit Solutions says. Just how Experian became so big helps to understand how it can plays such an important role in your credit profile.

Experian is the result of a merger of two leading credit bureaus. In 1996, GUS plc, a British conglomerate bought TRW Information Systems and Service, the largest credit reporting agency in the U.S. GUS combined TRW with CCN, a credit bureau it acquired in 1980. At the time of the merger, CCN was the UK’s largest credit bureau. The merger of the two companies created a global leader in credit reference and credit risk management services, Vivix Credit Solutions points out. Experian also provided global clients with information and analytical services.

The company’s service offering continued to expand over the following ten years, according to its website. In 2002, Experian acquired ConsumerInfo.com enabling consumers to monitor their credit status and reduce the risk of identity theft. Other acquisitions followed, enhancing Experian’s capabilities in decision analytics and marketing. Finally in 2006, GUS established Experian as an independent company with a position on the London Stock Exchange.

As big as they are and even with enormous technological capabilities, Vivix Credit Solutions cautions that credit bureaus do make mistakes. Consider that Experian receives between thirty to forty million new pieces of information every day. Experian cannot begin to screen for individual errors or catch mistakes. One mistake on your credit card can result in the denial of a loan. Also identity theft is growing so that the possibility of someone making a purchase using your identify is common.

Vivix Credit Solutions says that you need to understand about The Fair Credit Reporting Act, originally enacted in 1971. This act helps you ensure the accuracy and privacy of your credit information. You can request a free copy of your credit report from Experian or any of the other credit reporting bureaus every 12 months. If you find inaccurate, incomplete or unverifiable information, Vivix Credit Solutions advises that you have a right to dispute it and can help you in the process. The credit bureau must correct or delete the information within 30 days, unless it can verify its accuracy, which ensures you of the opportunity to re-establish your good credit.