Few financial figures are as important as a credit scores. The three-digit figure has a major impact on daily life — dictating what consumers can buy, how much credit they can obtain and even where they choose to reside.

A credit bureau gathers information about how consumers use credit. In other words, they collect information from as many consumer financial transactions or inquiries as they can. They then sell access to that combined information to anyone who has a legally-recognized reason (permissible purpose).

If you find errors or inaccuracies in your credit history file, you will have to submit a dispute letter or request to each of the credit bureaus on which the mistake appears. In some cases you may be able to dispute the error with online forms, but in some cases you’ll have to submit a letter with your corroborating documents.

The credit bureau keeps record of an individual’s credit history. A credit bureau prepares an individual’s credit report that contains every payment detail for that individual. A credit report also contains an individual’s personal information such as the name, residential address, official address, etc.

Credit Scoring is a mathematical formula that generates your bill payment history and general financial habits into a tidy package used by lenders to help decide how worthy you are of a loan and how much it will cost.