You don’t want to find out that there is an error on your credit report when you are in the process of trying to get a loan or a line of credit, Vivix Credit Solutions advises. Also with the rise in identify-theft, you need to be vigilant that no one is using your name to make purchases. Requesting and reviewing your credit standing from one of the credit agencies annually, if not more often, ensures you that your report is error free.

Credit reporting agencies, also called credit bureaus, create your credit report based on the information they gather from credit card companies, banks and other lenders. In turn, your credit report determines your credit score, Vivix Credit Solutions explains. Lenders use your credit score to determine if they will grant you a loan, how much down payment you will need to pay and what your interest rate will be. To underscore how important your credit score is, Vivix Credit Solutions points out that today prospective employers, landlords and even insurance companies even check your credit score to see what kind of a risk you pose.

There are three major credit bureaus, which are collectively called the “Big Three” because of their global reach and influence. Equifax is one of them. Vivix Credit Solutions thinks understanding the evolution of credit reporting by a company such as Equifax is an important step to repair and enhance your own credit profile.

Equifax was founded in 1899 in Atlanta as Retail Credit Company (RCC). The two founders, who were brothers and grocers, maintained a list of customers and their creditworthiness on behalf of their local Retail Grocer’s Association. To cover the costs of the effort, the brothers sold the information to other merchants.

By the 1960s, Retail Credit Company has offices across the United States and Canada. Some consumers complained that RCC was gathering too much information on them. As a result, the government held a series of congressional hearings and in 1971 enacted the Fair Credit Reporting Act (FCRA).

In 1975 RCC changed its name to Equifax. The company today focuses on business information and consumer reporting.

Under the FCRA, you have a series of rights. Vivix Credit Solutions cites the key provisions of the law to protect you include:

    You can receive a copy of your credit report once every 12 months at no expense to you
    You have a right to know what company or person has requested a copy your credit report in the last year or up to two years if it involves a potential employer
    Credit bureaus cannot share your credit report with just anyone. Your application for a loan would be considered a legitimate purpose.
    You can dispute data on your report
    The credit bureau has up to 30 days to investigate a dispute and make any necessary corrections