A credit bureau refers to an organization that judges the person, thoroughly collected all the information and payment records from their credit account, and gives all this information to the lenders such as banks and finance companies. Based on this information banks prepares the credit report of the person. The topic is ‘The credit bureau does PNC bank use’.
Credit bureaus are partners with many lenders and help them to make their reports. The banks analyze the report and give credit scores to the individual or the owner of a company. According to the score, they give loans to the person. They observe whether the person is loan-worthy or not. If the report has mentioned that the person has not paid their previous dues then they will not provide a loan to such person or the company. A borrower should always pay the loan amount, otherwise, interest will be charged on them.
Three Major Credit Bureaus In The USA
- Equifax
- Trans Union
- Experian
There is another bureau that also provides credit information. According to the report, if a borrower can’t pay the loan, the lender may deny the loan and if they agree to give the loan, then they will charge a higher rate of interest. If the borrower is mentioned as creditworthy then they will be charged a lower interest rate.
What is PNC bank? What credit bureau does it use?
PNC Bank is headquartered in Pittsburgh, Pennsylvania. It is FDIC insured bank. They provide financial services, wealth management, home lending, etc. They check the balance of the people’s accounts and also provide loans to them.
PNC bank uses the Experian Credit bureau for credit card approval. If a person gets approved, then the bank will report the monthly information to tall the three credit bureaus. There is a possibility that other bureaus give different scores and details. It is important to note which bank is using which bureau.
What is Experian credit bureau?
This credit bureau collects the credit history from many sources. They see whether the person pays all his payments on time and how they repay their credits. According to this information, they make their report. These reports are used by the banks. They decide whether to provide a loan to the person or not. They see whether they can afford to repay it or not. They ensure that customers are treated fairly after applying for the credit. People can get the loan at a rate that they can afford.
Credit report information
This report contains much information related to a person’s account. This helps the bank to know whether the business or other work of the person getting better or not. If not, the loan will be denied.
- Identification: It includes information of the person’s name, address, Aadhar card, PAN card, contact number, and more.
- Credit Account: It includes the date of opening the account, payment history, credit limit, current account balance, etc. They will check whether the payments have been made on time or not, also the clearance of the dues.
- Credit Inquiries: This request has been made by the customer to see their credit report. This type of inquiry is referred to as hard inquiry and this can affect the credit score of the person. If the person downloads their credit report on their own it’s referred to as Soft inquiry. This does not affect the report or the credit score.
- Bankruptcies: These records are not mentioned in the public record but can be seen by the credit bureau. This can be shown in the report for up to 7 years.
How to improve credit score?
The most common credit score is known as the FICO score which is a three-digit number between 350-800. If a person scores high, the person will get the loan easily. The credit score is determined by the credit bureau, and each bureau has a different score. There are tips to achieve a great score:
- Pay Dues On-time: A person should pay all his dues on time. This will encourage to increase in the credit score. The bank will see whether the person has a pod his bills on time or not. Based on this, they will provide loans.
- Oldest account: A person has to keep his past account open and maintained it well. Closing the oldest account, make the length of the report short and it can lower the credit score also.
- Credit Report: A person has to check their credit report in a month, to see their credit score. A person will come to know about their financial health.
Conclusion
The Credit Bureau plays a major role in people’s lives. If the report shows all the good things about the person like paying the bills on time, transfer of payment, etc. then the bank will provide a loan to them. These people are referred to as creditworthy and they will have to pay low-interest rates. Different credit bureaus provide different scores and this is normal because people do not update or provide data to the bureaus or banks properly. This leads to differences in the scores. The PNC uses Experian Credit Bureau and the bank will provide the loan according to the report given by the bureau. The Experian Credit Bureau sees whether the person can pay the loan on time or not. They see the credit history of the person.
