Merged Credit Report
Merged credit reports are important credit tools for consumers and
lenders alike. Therefore, it is important to understand the essentials
of merged credit reports.
First, what is it?
- Merged credit reports include credit data from all three of the
national credit bureaus. They serve the same purpose as a single
bureau credit report, but are more useful because they have information
from all three national credit bureaus. Since the 3 national credit
bureaus are competitors of each other, they do not normally share
information and usually have somewhat different credit information
on consumers. A merged credit report from all three bureaus is normally
required in a home mortgage transaction.
- Some merged credit reports that are used by lenders may merge
the credit information of an applicant and a co-applicant (e.g.
husband and wife) into a joint, merged credit report.
- Merged credit reports available to consumers are not normally
joint credit reports, but do typically merge credit information
from all 3 national credit agencies, specifically identifying what
data came from which credit agency.
- Merged credit reports for lenders are usually different from those
available to consumers. The most common difference is that merged
credit reports for consumers include all the accounts reported including
duplicate accounts reported by one or all 3 credit bureaus, whereas
merged credit reports for lenders usually eliminate duplicate accounts.
- Credit reporting companies that merge credit reports for lenders
develop their own merge method to eliminate duplicate information.
For example, some may only report the most negative information
among duplicate accounts. Others may report the most recent information
among duplicate accounts. Lenders may be able to specify which method
of merging they prefer. Merged credit reports for consumers usually
do not eliminate duplicate information.
Next, how is the merged report used?
- For consumers, the merged credit report is a great tool to check
for identity fraud and identity theft, and for determining if there
is inaccurate information in their credit report from any of the
3 major credit bureaus.
- The merged credit report for consumers is also used by consumers
to see who has been ordering their credit report. Normally a consumer
will recognize who has been checking their credit. Unusual inquiries
may be a signal for identity theft.
- Mortgage lenders routinely use merged credit reports to determine
your eligibility for home loans. Increasingly, auto lenders are
using the merged credit report for auto loans, and landlords use
it for tenant approvals. Employers may also use merged credit reports
in pre-employment situations.
- Merged credit reports are used by lenders not only to determine
if you get a loan but also to determine your loan interest rate.
- Because the merged credit report usually includes information
from all 3 credit agencies, a merged credit report may have 3 separate
credit scores for the lenders to review and compare in making their
lending decision. There may even be a credit score generated based
on the merged credit report itself. The credit data from all 3 major
credit bureaus plus all 3 credit scores may be used to determine
if a loan is made.
Summary
- Merged credit reports are used by consumers and companies alike
to get the most comprehensive picture of a consumer’s credit
history.
- Consumers check their credit reportto make sure it is accurate,
and to guard against id theft.
- Lenders use merged credit checks to make sure they know as much
as possible about a consumer before making a credit decision.
Standard Trucredit 3-Bureau Credit Report With
Creditor Addresses
Only $29.90
Or order your Trucredit 3 Bureau Credit Report with Creditor Addresses and All 3 Credit Scores for just $39.85.
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