The Benefits of Merged Credit Reports

Are all credit bureaus the same? In a word – no.

The national credit bureaus do not maintain identical databases of consumer credit information. Each bureau’s repository of data is different – and one bureau may hold more or less comprehensive or up-to-date information on a given consumer’s credit file.

Here are two reasons why:

Geographic Strength
It is generally known that some credit bureaus are “stronger” (store more comprehensive and up-to-date information) than others in particular regions of the country. For instance, one credit bureau may have more representatives in a particular region and is better able to obtain public record information. Also, some regional creditors may only report back to the bureau that is prevalent in their area, thereby depriving the other bureaus of their data.

Another factor impacting the credit bureaus’ data is the fact that the U.S. population is extremely mobile. Americans tend to move on average once every five to seven years. When a consumer moves, it may take a while for all of the information on their credit file to catch up with them.

Data Sources
As mentioned above, a regional creditor may choose not to report back to all three of the national credit bureaus. There are also some national creditors who choose not to report back to all three bureaus. The frequency of how often a creditor reports back may also vary, creating data discrepancies between the bureaus. In addition, creditors may inadvertently report duplicate information. This duplicate information, if it is not caught and corrected, may have an adverse effect on a consumer’s credit report. All of the above explain why it is possible to pull a credit report from two different credit bureaus on the same consumer and end up with significantly different results. A simple solution to this problem is to access credit reports from all three of the national bureaus.

Accessing all three bureaus individually, however, can be a confusing and time-consuming process. Each bureau has its own format for credit reports. Each uses its own classifications and codes for presenting data. This makes it difficult to distinguish what data is common and what data is unique when cross-referencing each bureau’s credit report. The inconsistency between bureau reports can also make the interpretation of the data problematic. Furthermore, accessing each bureau individually typically requires three different transactions, each with its own login process, requiring re-keying of the consumer’s information.

The Solution – Merged Credit Reports
The best way to avoid the hassle and confusion of accessing multiple credit bureaus individually is through the use of a merged credit report. Merged credit reports are typically offered by third-party credit reporting agencies that blend the data from multiple bureaus and reformat it into one standard, consistent format.

The “merge” process involves the combination of data from all three national bureaus into a single format and the elimination of duplicate data. This generates a credit report that is comprehensive, streamlined and easy-to-read. In addition, the merged credit report may offer features such as a customizable layout, a summary section for important information and highlighted derogatory information. As another benefit, accessing a merged multi-bureau credit report involves only a single transaction. Credit scores, however, cannot be merged, and will always be delivered as they were calculated by the bureaus.